Trading Statement

Marks & Spencer Group PLC
08 April 2003

                                                                    8 APRIL 2003


        MARKS & SPENCER QUARTER 4 TRADING STATEMENT AND UPDATE - 2002/03

UK Trading:

UK sales (including VAT) for the 11-week period to 29th March 2003 and the
52-week full-year period to the same date were:

                                           11 weeks to                          52 weeks to

                                           29th March                           29th March

                                         % on Last Year                       % on Last Year


                                    Actual         Like-for-like         Actual        Like-for-like
                                                                         

Clothing, Footwear and               -0.3                                +10.0

Gifts
Home                                 +9.3                                 +8.0


General                              +0.6
                                                       -0.4               +9.8               +9.0
Food                                 +4.6              +2.6               +5.1               +3.7


Total                                +2.4              +1.0               +7.8*              +6.7




(*excluding VAT, total sales were approximately 7.5%)

The impact of no Easter, together with the associated promotional activity, has
reduced this quarter's reported sales by an estimated 2% for General and 1.7%
for Food, giving an underlying performance of +2.6% in General and +6.3% in
Food.

We have held our clothing market share this quarter in what has been a more
difficult trading period, particularly in Greater London.

Sales of adult clothing increased by 0.8% for the quarter. However, the impact
of childrenswear sales has adversely affected total clothing reported
performance, despite good contributions from the DB07 boyswear range and
schoolwear.

Underlying Home performance over the quarter was +1.9%. Reported performance is
distorted by the timing of furniture deliveries.**

Food has outperformed the market over the quarter. Our new product launches,
together with a focus on key events such as Valentine's Day and Mother's Day,
have been well received by customers.





(** furniture sales are accounted for at the point of delivery, not at the time
the order is taken from the customer.)



International:

Full year turnover in the overseas businesses, including franchises, increased
by approximately 1% at constant exchange rates.

Preliminary Results and Group Profit before Tax:

The Preliminary Results will be announced on Tuesday, 20th May. Group profit
before tax and exceptional items is expected to be at the top end of market
expectations. The major exceptional items stem from the planned Head Office move
to Paddington Basin (c.£10 million)*** and the logistics review (c.£35 million).

Commenting on the statement, Roger Holmes, Chief Executive, said:

'Our general merchandise sales have been affected by weakening market conditions
during the last quarter but performance for the year overall has been
satisfactory. In Food, we have again delivered strong quarterly sales,
outperforming the market.'

'In the current environment, we will manage our clothing stock commitments and
operating costs more tightly. At the same time we will continue investing in
long term growth initiatives, rolling-out the successful Simply Food format,
reinvigorating Financial Services and developing our Home business.'

Guidance for 2003/04

  • We anticipate further improvement in the clothing primary margin
    (bought-in margin) of approximately 1% point.

  • Underlying UK retailing operating costs, including logistics, for 2003/04
    are planned to be held level on this year. However, as a result of
    investment in growth initiatives, total UK retailing operating costs will
    increase by approximately 3%. These incremental investment costs cover
    initiatives such as Simply Food, Home and, subject to the results of the
    pilot, marketing and system costs associated with a credit/loyalty card
    rollout.

  • The P&L costs of the Head Office move to Paddington Basin will be
    approximately £25 million to £30 million, compared to approximately £10
    million incurred this year. These costs will be treated as exceptional.

  • The impact of a national rollout of the combined credit and loyalty card
    will be to reduce Marks & Spencer Financial Services profits by c.£60
    million for the financial year 2003/04, compared to the £25 million in 2002/
    03. This is in line with the guidance given at the time of our Interim
    Results in November 2002.

  • The financial year incorporates a 53rd week. This will add £30 million to
    £40 million to full year profit before tax.

  • Capital expenditure will be higher than this year, due to the acquisition
    of the UK general merchandise warehouses owned by contractors, as previously
    announced, together with investment in the Simply Food roll-out, the Home
    business and the Head Office move to Paddington basin. Details will be given
    with the Preliminary Results.

(*** Market estimates of pre-exceptional PBT which have not yet reflected the
treatment of the Paddington costs as exceptional should increase by c.£10
million.)



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Statements made in this announcement that look forward in time or that express
management's beliefs, expectations or estimates regarding future occurrences and
prospects are 'forward-looking statements' within the meaning of the United
States federal securities laws. These forward-looking statements reflect Marks &
Spencer's current expectations concerning future events and actual results may
differ materially from current expectations or historical results. Any such
forward-looking statements are subject to various risks and uncertainties,
including failure by Marks & Spencer to predict accurately customer preferences;
decline in the demand for products offered by Marks & Spencer; competitive
influences; changes in levels of store traffic or consumer spending habits;
effectiveness of Marks & Spencer's brand awareness and marketing programmes;
general economic conditions or a downturn in the retail or financial services
industries; acts of war or terrorism worldwide; work stoppages, slowdowns or
strikes; and changes in financial and equity markets.

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For further information, please contact:


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Marks & Spencer Corporate Press Office:          020 7268 1919


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Analyst enquiries:

Tony Quinlan                         020 7268 4195

Nick Jones                              020 7268 6594




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