Trading Statement

Marks & Spencer Group PLC
10 April 2002



                         MARKS AND SPENCER GROUP P.L.C.

                               TRADING STATEMENT

UK Trading:

UK sales (including VAT) for the 11-week period to 30th March 2002 and the
52-week full-year period to the same date were:

                                            11 weeks to                           52 weeks to

                                            30th March                            30th March

                                          % on Last Year                        % on Last Year

                                     Actual         Like-for-like        Actual          Like-for-like
Clothing, Footwear and Gifts         +16.5                                +3.4
Home                                 +6.2                                 +4.9
                                    ________          ________          ________           ________

General                              +15.5              +16.6             +3.5               +3.5
Food                                 +6.0               +4.5              +5.7               +4.4
                                    ________           ________          _______            ________

Total                                +10.9              +10.6             +4.5               +4.0

                                   ________            ________          _______           ________



The impact of an early Easter, together with associated general merchandise
promotional activity, was to add an estimated 3% to General and 1.8% to Food
sales for the quarter.

Sales progress was achieved in all areas of adult clothing over the quarter
resulting in modest gains in market share. The strongest sales performance was
in womenswear and menswear.

Food performance was against an exceptionally strong quarter last year of +8.0%
due to customers' 'flight to quality' during the foot and mouth outbreak.

International:

Turnover for the full year, in the overseas businesses to be retained, decreased
by 3% at constant exchange rates resulting from weaker performance in certain
key franchises and Hong Kong.

Financial Services:

Financial Services turnover for the full year was down approximately 4% and
personal loan advances have fallen in a very competitive environment.



Commenting on the Trading Statement, Luc Vandevelde, Chairman and Chief
Executive, said:

'I am delighted that our customers continue to react positively to the on-going
improvements we are making to the appeal of our clothing and to the store
environment. More customers are visiting our stores, being tempted to buy and
spending more with us.

The response to our Spring ranges in both womenswear and menswear has been
particularly encouraging, continuing the progress made over the Christmas
period.

The performance of Foods was also good, given we were trading against a very
strong period last year.

While pleased with our progress, I recognise our performance was helped by the
buoyant High Street trading conditions and the fact we were up against weak
comparatives in the fourth quarter last year. We still have a long way to go to
recover lost ground, but I am confident that by continuously driving
improvements for our customers we can secure the recovery.'



Guidance for 2002/03

  • The UK clothing market remains buoyant, reflecting high levels of consumer
    confidence driven by low interest rates and a strong housing market. We are
    not assuming, however, that consumer spending levels will continue at the
    current rates throughout the whole of 2002/03. In addition, our clothing
    comparative sales will become more challenging as the year progresses.
  • Food sales will be adversely affected by no Easter trading periods in 2002
    /03 compared to two in 2001/02. This will impact sales by approximately 0.7%
    for the full year.
  • We anticipate further improvement in the clothing primary margin
    (bought-in margin) of approximately 1% point, reflecting the remaining
    benefits of the action to consolidate and relocate our manufacturing base,
    first announced in 1999.
  • We expect to deliver lower clothing markdowns in the first half of 2002/
    03, following the improved performance in the second half of 2001/02.
  • Underlying operating costs for 2002/03 are budgeted to increase slightly
    ahead of inflation. In addition, account should be taken of the following:
      • the full-year impact, approximately £25 million, of the sale and
        leaseback transaction
      • additional costs of approximately £15 million relating to the new Zip
        project which will improve the efficiency of our supply chain in
        childrenswear and lead to improvements in our primary margin in future
        periods
      • one-off costs of approximately £10 million, which will be incurred
        principally for I.T and infrastructure in preparation for the move of
        the Corporate Head Office to Paddington Basin

For further information, please contact:

Alison Reed - Group Finance Director [phone]

Tony Quinlan/Nick Jones - Investor Relations [phone]/6594

Marks & Spencer Corporate Press Office [phone]

The Preliminary Results will be announced on Tuesday, 21st May.



                      This information is provided by RNS
            The company news service from the London Stock Exchange