3rd Qtr Trading Statement

Marks & Spencer Group PLC
07 January 2005


Issued: Friday 7 January 2005

TRADING STATEMENT

UK Retail Sales for the 6 weeks to 1 January 2005 and 13 weeks to 1 January 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.

           6 weeks to 1 January 2005  13 weeks to 1 January 2005 Q2: 12 weeks to
           (vs 6 weeks to 3 January   (vs 13 weeks to 3 January  2 October 2004
           2004)                      2004)

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

Clothing   -4.9                       -4.4                       -3.7

Home      -23.3                      -25.2                      -21.4

Total
Clothing   -7.4       -8.5            -7.2       -8.5            -5.6    -7.7
& Home

Food       +1.7       -1.7            +1.6       -2.9            +3.1    -2.6
   
Total      -3.7       -5.6            -3.6       -6.0            -1.8    -5.5

           6 weeks to 1 January 2005  13 weeks to 1 January 2005 Q2: 12 weeks to
           (vs 6 weeks to             (vs 13 weeks to            2 October 2004
           27 December 2003)          27 December 2003)

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

Clothing   -4.4                       -3.1                       -3.6

Home      -27.5                      -24.6                      -21.4

Total
Clothing   -7.7       -8.8            -6.0       -7.4            -5.5    -7.6
& Home

Food       +0.7       -2.7            +1.9       -2.5            +2.9    -2.8

Total      -4.3       -6.3            -2.8       -5.3            -1.8    -5.5

When we last reported in November, the trading environment had become more
difficult. Despite heightened levels of promotional activity over the Christmas
period, including our two Christmas Spectaculars, significantly more stock was
carried over into the end of season Sale compared with last year.

While we have achieved good clearance of the Sale stock, the impact of the Sale
has contributed to higher markdown costs for the quarter. Markdown costs for the
second half, which includes an estimate for the impact of the Easter Sale, are
now expected to show an increase of c.£40m compared with last year. Stock
control is a key priority for the business and total forward commitments are now
25% less than for the equivalent period last year.

While our Food business traded disappointingly throughout October and November,
trading showed some improvement over the Christmas period.

Although we still have three months of trading ahead of us until the end of the
current financial year, given our third quarter performance, and in particular
the impact of higher markdown costs, we now expect that profit before tax and
exceptional items for the current year will be in the range of £600 - 625
million.

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]
Damian Evans [phone]

Corporate Press Office: 020 8718 1919


Investor/Analyst Conference call details:

This will be hosted by Stuart Rose at 08.30 (GMT) on Friday 7 January 2005.

Dial in number: [phone]

A recording of this call will be available until 17.00 (GMT) on Friday 14
January 2005.

Dial in number: [phone]
Pin Code: 640026




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