Logistics Review

Marks & Spencer Group PLC
27 March 2003

(Thursday, 27 March 2002)


                    MARKS & SPENCER ANNOUNCES RESULTS OF ITS
                      GENERAL MERCHANDISE LOGISTICS REVIEW

Marks and Spencer Group p.l.c. today announces that, as a result of its UK
General Merchandise logistics review, it has reduced its contractors for
warehousing from four to two.

Marks & Spencer has awarded a contract to Exel to operate seven UK warehouses.
Christian Salvesen will continue to manage its current three UK warehouses.
GIST will continue to operate the majority of our Food Supply Chain and Tibbett
& Britten remains a partner in our General Merchandise transport network.

This decision, together with our earlier announcement of the proposed closure of
Hayes, will incur an exceptional cost of approximately £35m this financial year.
It will generate savings of £20m on an annualised basis and supports the
business' previously stated intention to reduce operating costs as a percentage
to sales.

Marks & Spencer is in preliminary discussions with existing owners of the
distribution centres with a view to acquiring the property assets which will
operate under service contracts.  This arrangement will provide greater
operational flexibility in the future.

David Norgrove, Director of Clothing & International at Marks & Spencer
commented:

'The UK General Merchandise logistics review aims to streamline Marks &
Spencer's supply chain, from raw material to customer, to deliver aspirational
products, with speed and flexibility, at outstanding values.

'This was a very difficult decision.  We had four excellent tenders and we thank
GIST and Tibbett & Britten for the very professional services that they have
offered us in General Merchandise warehousing over many years.'


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