Marks & Spencer: Rotation, Rotation, Rotation. Part 1: Right place

Research evidence excerpt

Marks & Spencer: Rotation, Rotation, Rotation. Part 1: Right place

25 June 2026

Richard Trainor

+44 20 7762 1050

European Food Retail richard.trainor@bernsteinsg.com

Marks & Spencer Group PLC William Woods

+44 20 7676 6806

Rating william.woods@bernsteinsg.com

Outperform Alice Buckley

Price Target +44 20 7676 6739

alice.buckley@bernsteinsg.com

MKS.LN 440.00 GBp

Rhea Gudiwala

+44 20 7676 7293

rhea.gudiwala@bernsteinsg.com

Marks & Spencer: Rotation, Rotation, Rotation. Part 1: Right

place

Marks & Spencer’s store rotation programme is a key component of its transformation. The

Close Date 24 Jun 2026

store estate has gone from a millstone around the Company’s neck to a platform for growth.

MKS.LN Close Price (GBp) 377.80

This progress demonstrates the grit required to deliver the next phase of change. But it has

Price Target (GBp) 440.00

been a significant investment: £1.1bn in exceptional costs of closures since 2016 plus ongoing

Upside/(Downside) 16%

£200m+ p.a. capex on new stores and refurbishments.

52-Week Range 411.30/301.50

Since our initiation with an Outperform rating in May, this programmme has been of great EDME 1,578.05

interest to investors. In this first part of a series (“Part 1: Right place”) we provide granular FYE Mar

analysis of store mix, space allocation and productivity, alongside forward projections of estate Div Yield 1.1%

evolution and its impact on sales. Market Cap (GBP) (M) 7,807

EV (GBp) (M) 10,383

After decades of inertia, management has demonstrated the willingness to take difficult Performance YTD 1M 6M 12M

decisions, including the closure of 94 Full line stores. The programme has evolved from Absolute (%) 14.5 8.8 17.7 6.3

reactive closures into a disciplined, returns-led capital allocation framework. When people EDME (%) 7.3 0.8 7.9 18.7