Trading Statement

Marks & Spencer Group PLC
12 October 2004

12 October 2004


UPDATE ON TRADING

On 21 September, when we launched the Tender Offer, the company gave a trading
update for the 10 weeks to 18 September 2004. Today, we are issuing our 12 week
UK Retail Sales figures for the period to 2 October 2004 as part of our normal
reporting cycle. In addition, we are providing guidance on the unaudited first
half Group profit before tax and exceptionals to ensure that shareholders have
full information within the Tender Offer period.

UK Retail Sales

UK Retail Sales for the 12 weeks to 2 October 2004 and 26 weeks to 2 October
2004 are shown below. Given that the 2003/04 financial year was for a 53 week
trading period, the figures have been produced both on a financial accounting
basis and, to avoid distortion, on a comparable trading week basis.

On a comparable trading period basis, for the two week period from 18 September
2004 to 2 October 2004, Total Clothing and Home sales were steady. Sales in Food
were slightly lower.

               10 weeks to 18         12 weeks to 2       26 weeks to 2
            September 2004 (vs 10  October 2004 (vs 12    October 2004
            weeks to 13 September      weeks to 27
                   2003)            September 2003)

Financial   Actual %  Like for     Actual   Like for     Actual   Like
accounting  on LY     like % on    % on     like % on    % on     for
basis                 LY           LY       LY           LY       like %
                                                                  on
                                                                  LY

Clothing    -5.4                   -3.6                  -1.9

Home        -20.8                  -21.4                 -16.7

Total       -7.1      -9.2         -5.5     -7.6         -3.5     -5.5
Clothing &
Home

Food        +2.9      -2.5         +2.9     -2.8         +3.4     -2.1

Total       -2.7      -6.3         -1.8     -5.5         -0.5     -4.0

Source: unaudited management accounts



               10 weeks to 18         12 weeks to 2       26 weeks to 2
            September 2004 (vs 10  October 2004 (vs 12   October 2004
            weeks to 20 September   weeks to 4 October
                   2003)                 2003)

Comparable  Actual %  Like for     Actual   Like for     Actual   Like
trading     on LY     like % on    % on     like % on    % on     for
week                  LY           LY       LY           LY       like %
basis                                                             on
                                                                  LY

Clothing    -3.9                   -3.7                  -2.3

Home        -19.8                  -21.4                 -17.1

Total       -5.6      -7.7         -5.6     -7.7         -3.9     -5.9
Clothing &
Home

Food        +3.5      -2.0         +3.1     -2.6         +3.4     -2.1

Total       -1.6      -5.2         -1.8     -5.5         -0.7     -4.2

Source: unaudited management accounts




Profit Before Tax

Unaudited Group profit before tax and exceptionals for the 26 weeks to 2 October
2004 is expected to be between £285m to £295m compared with £325m* for the same
period last year. This is within the range of current market forecasts.

Full details of the Interim Results will be published, as previously timetabled,
on 9 November 2004.

* Figures restated due to FRS17, 'Retirement Benefits' and Application note G of
FRS5, 'Revenue Recognition

Exceptionals

As stated in the Preliminary Results statement on 25 May 2004 and our
operational review on 12 July 2004, we expect to take exceptional charges for
the closure of the Lifestore concept, including the Gateshead store; our Head
Office move to Paddington Basin; the Head Office restructuring programme, and
Bid Defence costs. These exceptional charges are expected to be around £80m in
the first half.

Return of Capital

As previously announced, implementation of the Tender Offer requires the
approval of Shareholders at an Extraordinary General Meeting to be held at
11.00 a.m. on Friday 22 October 2004 at Wembley Conference Centre, Stadium Way,
Wembley HA9 0DW.

Contacts:

Investor Relations:
Amanda Mellor               [phone]
Damian Evans                [phone]
Corporate Press Office:     020 8718 1919



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