1st Quarter Trading Statement

Marks & Spencer Group PLC
16 July 2003




Issued: Wednesday 16 July 2003

                  MARKS & SPENCER QUARTER 1 TRADING STATEMENT

UK Trading

UK sales (inc. VAT) for the 15 weeks ended 12th July were:

                                   15 weeks to
                                    12th July         Like-for-like*
                                  % on last year



Clothing, Footwear and Gifts          +3.9%



Home (see Appendix)                   -1.4%
                                       ____

General                               +3.4%               +2.8%



Food                                  +8.1%               +5.1%
                                      _____

Total                                 +5.4%               +3.8%
                                      _____

* Like-for-like sales exclude the contribution from new, closed or redeveloped
stores.

The timing of Easter and the associated promotional activity contributed 1.2% to
General and 1.5% to Food.

Clothing performance was driven by a 3% increase in volumes. The balance of the
increase reflected customers trading up, partly offset by marginal price
deflation. Approximately 10% less stock than last year will be reduced during
the Summer Sale, which started on 3rd July.

Home sales were impacted by the relative underperformance of furniture, due to
lower promotional activity and the strong comparatives for the Jubilee weekend
event last year.

Food performance was ahead of the market, through progress of like-for-like
sales and the increasing contribution from the roll-out of new Simply Food
space. Food inflation for the quarter was approximately 1.5%.

Commenting on the Trading Statement, Roger Holmes, Chief Executive said:

'We had a satisfactory first quarter in which we saw an improvement in Clothing
performance, particularly in June, with good Food sales throughout the period.

'Sales progress has been made in adult clothing, particularly in per una which
is now in its second year, together with improved performance in women's and
men's formalwear. Childrenswear continues to underperform although we have seen
some signs of progress. As planned, tighter stock commitments have delivered a
reduction in the clothing stock going into the Summer Sale.

'The performance of Home reflects our plans to be less promotionally driven,
particularly in furniture, to build the right foundation for the long-term
profitable growth of this business.

'Food continues to outperform the market through the on-going development of
high quality, innovative products that continue to tempt our customers, together
with the strong performance of Simply Food stores which are now opening at the
rate of one a week.'

Appendix

Home is an important avenue of future growth and gifts are an integral part of
the Home offer. For this reason, from Quarter 2, sales of Home gifts will be
reported within Home. Reflecting this reclassification for Quarter 1, Clothing
and Footwear performance (excluding Gifts) was +3.7%, with Home (including
Gifts) at +1.4%.

For reference, last year's quarterly performance has been noted below, with
sales as originally reported shown in table 1 and performance with gifts
incorporated into Home shown in table 2.

Table 1: Sales (inc. VAT), as previously reported

                                     % on last year

           14 weeks   12 weeks   Half-year    15 weeks   11 weeks   Full-year
           to 6th     to 28th    2002/03      to 11th    to 29th    2002/03
           July 2002  Sept.2002               Jan.2003   Mar.2003                    
                  
Clothing,    14.8       13.8        14.4         9.8       -0.3       10.0
Footwear
and
Gifts

Home          5.9       15.1        10.0         5.0        9.3        8.0
(exc.
Gifts)
           ---------  ---------    ---------  ---------  ---------    ---------

General      14.0       13.9        14.0         9.4        0.6        9.8

           ---------  ---------    ---------  ---------  ---------    ---------



Table 2: Sales (inc. VAT), with Home Gifts included within Home

                                      % on last year
         
            14 weeks   12 weeks   Half-year    15 weeks   11 weeks   Full-year
            to 6th     to 28th    2002/03      to 11th    to 29th    2002/03
            July 2002  Sept.2002               Jan.2003   Mar.2003   

Clothing      14.7       13.7       14.2          9.5       -0.4        9.7
and
Footwear

Home (inc.     8.6       15.7       11.8          9.1        8.6        10.1
Gifts)

            ---------  ---------    ---------  ---------  ---------    ---------

General       14.0       13.9       14.0          9.4        0.6         9.8

            ---------  ---------    ---------  ---------  ---------    ---------


For further information, please contact:

Media enquiries:
Marks & Spencer Corporate Press Office:  020 7268 1919

Photography:
Photography available from:
www.newscast.co.uk
or
www.marksandspencer.com/mediacentre

Analyst enquiries:
Tony Quinlan     020 7268 4195
Sarah McGlyne    020 7268 1563

There will be a conference call for analysts, hosted by Roger Holmes, CEO and
Alison Reed, CFO, at 08.30 (BST) on Wednesday 16 July. Please call [phone]
0194 and quote the password 'AGM'.








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