Trading Update

Marks & Spencer PLC
18 September 2000

                  MARKS & SPENCER TRADING UPDATE

As a result of the senior management changes made today, and
therefore the potential for speculation ahead of the half-year
results announcement, the Board believes it appropriate to provide
an update on recent trading.  The statement below indicates the
current position of the UK Retail division.  The International and
Financial Services divisions continue to perform in line with
expectations, and the half-year results will be published on 7
November.

UK Retail Trading Statement

UK Retail sales in the 24 weeks to 16 September were up 0.8% on
last year.

A sales analysis is given below, with the performance for the
first 15 weeks announced at the time of the AGM in July shown for
comparison.  Like-for-like sales are shown in brackets.

                              24 weeks to         15 weeks to
                              16 September        15 July

     Clothing                  -1.4%               +0.3%
     Home                     +12.5%              +12.8%

     Total General             -0.3%* (-2.8%)      +1.2% (-1.2%)
     Foods                     +2.3%  (+0.8%)      +2.7% (+1.3%)

     Grand Total              + 0.8%  (-1.2%)      +1.8% (-0.2%)

 (Like-for-like sales are estimated by comparing total sales with
  new and extended stores excluded.)

* General sales have been reduced by an estimated 1.2% (£21
million) as a result of last week's fuel dispute.

Compared to previous years, we made deeper reductions at the start
of the summer sale.  This was effective in clearing a higher
volume of end of season stock, but the cost of reductions was £23
million more than the comparative period last year.  The changed
buying practices are delivering the expected benefits, but the
higher reductions offset the greater part of the buying benefits
achieved in the first half.

There are other factors affecting the net margin in the first
half, which were not present in the comparable period last year,
and which will not recur in the second-half, specifically:

- Additional marketing costs of an estimated £15 million due to
  the recent re-launch of the brand and the set-up expenses of the
  new marketing division.
  
- The revenue costs of £13 million associated with 22 new
  concept stores (20 refurbished stores and 2 new stores), that will
  open in October and November.  Sales in the three concept stores
  already opened (Sutton, Fosse Park and Kensington) are, in
  aggregate, 16% ahead of last year's figures, since opening in the
  new format.

The full year results will benefit from sales of the 22 new
concept stores, the escalating benefits of new buying policies,
and the absence of the non-recurring costs listed above.

                                 

                           Graham Oakley
                         Company Secretary


For further information, contact:

Tony Quinlan, Marks & Spencer Investor Relations
020 7268 4195