Trading Statement

Marks & Spencer Group PLC
14 January 2004


Issued: Wednesday 14 January 2004

                           JANUARY TRADING STATEMENT

UK: Sales (inc. VAT)

Sales for the 7-week and 15-week periods to 10th January, 2004 were:

                            7 weeks to               15 weeks to
                           10th January              10th January
                          % on Last Year            % on Last Year

                      Actual    Like-for-like*  Actual    Like-for-like*

Clothing and           -3.0         -           -3.3          -
Footwear

Home (inc. Gifts)      -4.0         -           -5.1          -
                      _____        _____        _____        _____
General                -3.2        -4.1         -3.6         -4.5

Food                   +4.7        +0.5         +4.7         +0.7
                      _____        _____        _____        _____
             Total     -0.1        -2.3         -0.4         -2.5
                       ____        _____        _____        _____


   *Like-for-like sales have been estimated by comparing total sales with
    new, developed and closed stores excluded.

Commenting on performance, Roger Holmes, Chief Executive said:

'Total sales were marginally down this quarter, with growth in Food sales offset
by a disappointing Clothing performance, down 3.3%, of which 2% was volume.
Stock commitments were well controlled and gross margin gains will be delivered
as planned.

'The fall in clothing sales was driven by a weak performance in certain key
Womenswear areas, notably knitwear, coats and suits, where our ranges were not
strong enough and the warm weather had significant impact. Where the product was
right, such as in per una and casualwear, we achieved strong sales growth.


'Sales in Lingerie improved, outperforming the market and Menswear was
marginally down, in line with the market. Childrenswear sales were down overall,
although full price sales were up 4%, with significantly less discounting than
last year.

'In Home, good progress was made in gifts and seasonal stationery, but other
categories under-performed as we continue repositioning the ranges in
preparation for the first Marks & Spencer Lifestore. This will open on schedule,
in Gateshead, on 25th February.

'Food performance was adequate and we held market share over the period. We
opened 22 Simply Food and Food stores, adding c.100,000 square feet of new Food
space over the quarter. Overall these formats are performing in line with our
plans and we are pleased these stores are attracting new customers.

'With non-Food sales below plan, we controlled commitments tightly and put less
stock than last year into the January Sale, which has since cleared well.
Mark-down costs for the quarter were marginally ahead of last year due to
promotional activity earlier in the season, but the clothing bought-in margin is
coming through slightly higher than forecast at the time of our Interim Results.

'The launch of the &more credit and loyalty card has been successful, with the
total number of activated credit card accounts at the end of December standing
at just under 1.7 million.'
                              --------------------

Updated guidance

Full-year guidance was given at the time of our Interim Results in November and
where not specifically commented on below, remains unchanged. Revisions to the
guidance are:

-    The second-half clothing bought-in margin increase is running at a
     slightly higher rate than the 1% guidance given at the time of our
     Interim results, which compensates for the small increase in mark-down
     costs for the quarter.

-    We now anticipate the increase in operating costs, including
     distribution, will be c.1.5%, compared to the previous estimate of 3%. This
     is largely due to employee performance related bonuses being significantly
     below last year, reflecting our remuneration policy of payment for
     performance. This guidance is before taking account of the likely impact
     that the actuarial review of the Group's defined benefit pension plan will
     have on the amount charged for pensions.




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

Investors & Analysts Conference Call
This will be hosted by Roger Holmes, CEO and Alison Reed, CFO at 08.15 (GMT) on
Wednesday 14 January.

Dial in number:                                       [phone]
Password:                                             Christmas

A recording of this call will be available until midnight (GMT) on Friday 16
January.
Dial:                                                 [phone]
Pin Code:                                             449652



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