Marks & Spencer: Rotation, Rotation, Rotation. Part 2 - Right format

Research evidence excerpt

Marks & Spencer: Rotation, Rotation, Rotation. Part 2 - Right format

9 July 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 2 - Right

format

Nowhere in retail is the line between brilliance and folly finer than in store design:

Close Date 8 Jul 2026

retailers want the best stores, but often waste cash on investments that do not pay back.

MKS.LN Close Price (GBp) 374.90

Marks & Spencer’s bold newer stores are firmly on the right side of this line. Return on

Price Target (GBp) 440.00

investment is strong, and the stores drive changes in customer perception and a sustainable

Upside/(Downside) 17%

competitive advantage. The new formats are a success, and this analysis reinforces our

52-Week Range 411.30/301.50

Outperform view - but the programme has a long way to run and a lot more to spend.

EDME 1,580.78

Since our initiation with an Outperform rating in May, the store rotation programme has been FYE Mar

of great interest to investors. In this second part of a series (following Part 1: Right Place) Div Yield 1.1%

we analyse performance of new formats for new and renewal stores and forecast the capex Market Cap (GBP) (M) 7,797

required to complete the programme. EV (GBp) (M) 10,373

Performance YTD 1M 6M 12M

A fine line between brilliance and folly. Store investment needs to balance art and Absolute (%) 13.6 4.6 8.7 11.6

science.