Trading Statement

Marks & Spencer Group PLC
13 July 2005



Issued: Wednesday 13 July 2005



         QUARTER 1 TRADING STATEMENT 2005/06 - 14 weeks to 9 July 2005

  • UK Retail Sales down 3.1%:
      General Merchandise down 10.3%
      Food up 5.0%
  • Full price sales* of General Merchandise down 2.4%
  • 40% less stock to go into Summer Sale
  • Margin and cost targets unchanged

UK Retail Sales for the 14 weeks to 9 July 2005 were down 3.1% in total with
General Merchandise down 10.3% and Food up 5.0%.  Within this Clothing was down
9.2% and Home down 22.3%. Like for like sales were down 5.4% in total (Q4 04/05:
-6.3%) with General Merchandise down 11.2% (Q4 04/05: -9.2%) and Food up 0.7%
(Q4 04/05: -3.1%).

Within General Merchandise, full price sales were down 2.4%. We have seen an
improving trend in full price sales over the last three quarters. This quarter
reflects the focus on profitable sales, improvements in product and the timing
of the Summer Sale.  We continue to focus on offering outstanding value. In
clothing we have significantly reduced prices year on year to ensure that our
opening price points are highly competitive. Customer reaction to the new
opening price points has been good and volume growth substantial.

Food has performed well. We have improved product innovation, service and
availability and there has been a positive reaction to our recent advertising
campaign which highlights our outstanding quality and value.

Stuart Rose, Chief Executive said: 'The trading environment continues to be very
tough. We are pleased with the progress in Food with its return to like for like
sales growth. In General Merchandise, the figures reflect the significant change
in our trading stance compared to this time last year when our priority was to
clear overstocks. This was achieved through deeper markdowns and extended sale
periods. This boosted sales figures but impacted profitability.

'Our focus remains full price profitable sales, improving our financial
performance through margin, cost and markdown management. We have made good
progress. This has enabled us to delay the Summer Sale by 18 days. We go on Sale
tomorrow with 40% less stock than last year.

'While the trading environment remains very challenging, better buying, stock
and cost control should enable us to make further progress.'


 * non-clearance sales


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 08.10 (BST) on Wednesday 13 July 2005.

Dial in number:                      [phone]

A recording of this call will be available until Wednesday 20 July 2005.

Dial in number:                      [phone]
Access Code:                         667063


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