Trading Statement

Marks & Spencer Group PLC
12 April 2005



Issued: Tuesday, 12 April 2005

QUARTER 4 TRADING STATEMENT 2004/05

UK Retail Sales for the 13 weeks to 2 April 2005 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.

COMPARABLE TRADING WEEK BASIS

                 Actual % on Last Year           Like for Like % on Last Year
                 -------- -------- --------      -------- -------- --------
                 Q3       Q4       Full Year     Q3       Q4*      Full Year
------------     -------- -------- --------      -------- -------- --------
Clothing          -4.4     -3.4     -3.2
------------     -------- -------- --------      -------- -------- --------
Home             -25.2    -22.8    -21.3
------------     -------- -------- --------      -------- -------- --------
Total Clothing &
Home              -7.2     -5.6     -5.3          -8.5     -6.7     -7.0
------------     -------- -------- --------      -------- -------- --------
Food               1.6      1.2      2.3          -2.9     -3.0     -2.8
------------     -------- -------- --------      -------- -------- --------
Total             -3.6     -2.3     -2.0          -6.0     -4.9     -5.1
------------     -------- -------- --------      -------- -------- --------


FINANCIAL ACCOUNTING BASIS

                 Actual % on Last Year           Like for Like % on Last Year
                 -------- -------- --------      -------- -------- --------
                 Q3       Q4       Full Year     Q3       Q4       Full Year
------------     -------- -------- --------      -------- -------- --------
Clothing          -3.1     -5.9     -3.1
------------     -------- -------- --------      -------- -------- --------
Home             -24.6    -24.8    -21.4
------------     -------- -------- --------      -------- -------- --------
Total Clothing &
Home              -6.0     -8.0     -5.2          -7.4     -9.2     -7.0
------------     -------- -------- --------      -------- -------- --------
Food               1.9      1.3      2.4          -2.5     -3.1     -2.6
------------     -------- -------- --------      -------- -------- --------
Total             -2.8     -3.7     -1.9          -5.3     -6.3     -5.1
------------     -------- -------- --------       -------- -------- --------
* includes the impact of Easter and the mid-season sale. This is estimated to
be a benefit of 0.5% in both Food and Total Clothing & Home.

While the trading environment remains difficult, we continue to focus on
delivering better quality, value and styling to our customers. Footfall and
clothing volumes are up for the full year. Overall, Food sales are growing and
market share has been maintained. While like-for-like Food sales in our major
city centre stores have declined, sales at Simply Food and Food sales
out-of-town remain strong.

Our mid-season sale started as planned earlier than last year due to the timing
of Easter. Stocks are clean. Stock control remains a key priority for the
business and total forward commitments are now over 30% down on last year.

We now expect that profit before tax and exceptional items for 04/05 will be in
the range of £610-625m.

Stuart Rose, Chief Executive said: 'The trading environment continues to be
difficult. The Company is going through substantial change and we believe we are
making progress tackling the underlying issues that we face.'

Guidance for 2005/06 is as follows:

   • Group capital expenditure for 2005/06 will be in the range of £300-350m.

   • The planned opening of new footage will add c1.2% to general merchandise
     and c3.3% to food, on a weighted average basis.

   • We are on-track to deliver £120m to the bought-in margin (and £140m for
     06/07) as previously announced.

   • Operating costs, including logistics, are expected to increase by less than 
     1.0%. Cost savings are expected to offset underlying cost inflation, cost 
     of annualised new footage and an anticipated c8% increase in rates
     (reflecting the five yearly step change in rateable valuations along with 
     the annual increase in UBR). This guidance excludes a provision for bonus.

   • We expect profits from our financial services business for 05/06,
     including the income from our relationship with HSBC where systems
     transition and card replacement costs for chip and pin will depress profits
     in the short-term, to be around £15m.

   • The Group will give guidance on the impact of International Financial
     Reporting Standards on 24 May 2005.

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.

Contacts:

Investor Relations:
Amanda Mellor                [phone]
Sarah McGlyne                [phone]

Corporate Press Office:      [phone]

Investors & Analysts Conference Call:
This will be hosted by Stuart Rose at 07.25 (GMT) on Tuesday 12 April 2005.
Dial in number:              [phone]

A recording of this call will be available until Tuesday 19 April 2005.
Dial in number:              [phone]
Access Code: 654960



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