Business Transformation

Marks & Spencer Group PLC
02 April 2004


Issued: Friday 2 April 2004

            MARKS & SPENCER STEPS UP PACE OF BUSINESS TRANSFORMATION

Marks & Spencer today announces a review of its network of head office and
financial services operations in order to create a faster, more efficient
customer facing business. This forms a major part of Marks & Spencer's ongoing
plan to accelerate business transformation and will cover structure and
processes.

The review will work alongside elements of the plan designed to enhance and
extend our offer to more customers. These include initiatives such as: the
roll-out of Simply Food stores; the launch of the &more credit and loyalty card;
continuing developments in Clothing; opening of Marks & Spencer Lifestore;
increasing product choice in High Street stores and the store development
programme.

As a result of preliminary indications from the review, it is anticipated that
around 500 jobs may be lost from a total number of 5,000 in the forthcoming
financial year (2004/5). It is also anticipated that a further 500 may be lost
in the following financial year (2005/6) as a result of technological enablement
and outsourcing.

Head Office locations at Baker Street; Stockley Park; Salford Quays, Manchester
(3,500 employees) and financial services in Chester (1,500 employees) in head
and back office functions will be included. The approximately 58,000 customer
assistants and managers in stores will not be affected.

The review is not complete and will be subject to a consultation process with
our employees, which we anticipate commencing in May. Through this period, the
Company will do all it can to support those affected by any changes.

The potential loss of the initial 500 jobs could generate in the region of £25m
in annualised savings, before incurring a one-off cost. We will update on this
figure and any other potential savings arising from the review, in due course.

Roger Holmes, Chief Executive, Marks & Spencer, said: 'This is an integral part
of our plan to kick-start the next stage in the transformation of the business.
It is also an important step in creating a more efficient organisation and
serving our customers better. We recognise this will be a challenging time for
our people and we will do our best to support them through this period. '


For further information, please contact:

Media Enquiries
Clair Foster/Sue Sadler    Corporate Press     020 7268 8323/8642/1919
Lisa Attenborough          Corporate PR        020 7268 6166

Analyst Enquiries
Tony Quinlan                                   020 7268 4195
Damian Evans                                   020 7268 1563








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