The History of Marks & Spencer: From Penny Bazaar to Global Retail Icon
Marks & Spencer (M&S), a cornerstone of British retail, has evolved over nearly 140 years from a single market stall in Leeds to a global brand synonymous with quality, innovation, and adaptability. Founded in 1884 by Michael Marks and later joined by Thomas Spencer, M&S has navigated economic upheavals, wars, and shifting consumer trends to become a household name. This comprehensive history traces its journey, exploring its growth, innovations, challenges, and transformation into a modern retailer with a focus on sustainability and digital innovation. Spanning its origins, expansion, cultural impact, and recent reinvention, this account highlights why M&S remains a defining force in retail.
Origins: The Penny Bazaar (1884–1900)
Marks & Spencer began with Michael Marks, a Jewish immigrant from Slonim (then part of Russian Poland, now Belarus), who arrived in England in the early 1880s fleeing persecution. Unable to speak English fluently, Marks settled in Leeds, where the city’s thriving Jewish community and industrial economy offered opportunity. In 1884, at age 25, he borrowed £5 from wholesaler Isaac Dewhirst to establish a stall at Leeds’ Kirkgate Market. Marks’ stall operated under the slogan “Don’t ask the price, it’s a penny,” offering household goods like buttons, needles, and combs at a fixed penny price. This simple pricing model appealed to working-class shoppers, ensuring accessibility and predictability.
Marks’ business acumen shone early. He expanded to other northern markets, including Wigan and Warrington, and by 1890 operated multiple stalls. His success stemmed from understanding customer needs, maintaining low prices, and displaying goods openly to encourage impulse purchases. In 1894, Marks partnered with Thomas Spencer, a cashier at Dewhirst’s firm, who invested £300 to become a 50% partner. Spencer’s financial expertise and organizational skills complemented Marks’ entrepreneurial flair, formalizing the business as Marks & Spencer.
The duo opened their first permanent shop, a “penny bazaar,” in Manchester in 1894, followed by others in northern England. By 1900, M&S operated 36 bazaars—12 covered stalls and 24 shops—across cities like Liverpool, Birmingham, and Cardiff. The partnership incorporated as Marks & Spencer Ltd in 1903, laying the foundation for national expansion. Michael Marks’ untimely death in 1907 at age 48 left Spencer in charge, but Spencer retired soon after, passing leadership to Marks’ son, Simon Marks.
Early Growth and Innovation: 1900–1920s
The early 20th century marked M&S’s transition from bazaars to high-street stores. Simon Marks, who joined in 1907 and became chairman in 1916, was instrumental in this shift. Educated at Manchester Grammar School and influenced by American retail, Simon envisioned M&S as a modern chain offering quality goods at affordable prices. He moved away from the penny pricing model, introducing varied price points while maintaining value.
By 1914, M&S operated 140 stores across the UK, focusing on clothing, haberdashery, and household goods. World War I disrupted trade, but M&S adapted by supplying military uniforms and equipment, sustaining growth. Post-war, Simon Marks accelerated expansion, opening larger stores in cities like London and Bristol. In 1926, M&S moved its headquarters to Baker Street, London, signaling its ambition to dominate British retail.
A pivotal innovation was the 1928 opening of the Oxford Street flagship store in London, one of the largest department stores in the UK at the time. This store introduced M&S’s iconic St Michael brand, named after Michael Marks, which became synonymous with quality clothing and food. Simon Marks also forged direct relationships with British manufacturers, bypassing wholesalers to control quality and reduce costs. This supply chain model, revolutionary for the era, ensured consistent standards and competitive pricing.
Interwar Years and Social Impact: 1930s
The 1930s were a golden era for M&S, despite the Great Depression. Simon Marks, alongside director Israel Sieff, modernized operations and expanded the store network to 234 by 1939. M&S introduced in-house textile labs in 1934 to test fabric durability, a first in British retail, ensuring products met rigorous standards. The company also pioneered synthetic fabrics like rayon, making fashionable clothing affordable for the masses.
M&S’s commitment to employee welfare set it apart. In 1934, it introduced staff benefits like subsidized meals, health screenings, and pensions—uncommon for retail workers at the time. The company’s paternalistic culture, rooted in Jewish philanthropy, fostered loyalty among its growing workforce. By 1939, M&S employed over 15,000 people, many of whom were women, reflecting its role in providing stable jobs during economic uncertainty.
Food retailing emerged as a new frontier in the 1930s. M&S began selling canned goods, biscuits, and sweets, laying the groundwork for its later dominance in food retail. The company also championed consumer rights, supporting the 1938 Food and Drugs Act to improve food safety standards. These efforts cemented M&S’s reputation as a trusted retailer prioritizing quality and fairness.
World War II and Post-War Recovery: 1940s–1950s
World War II posed significant challenges. Bombing raids destroyed or damaged 70 M&S stores, including the Oxford Street flagship, and rationing limited clothing and food supplies. M&S contributed to the war effort by producing utility clothing under government contracts, adhering to strict fabric quotas while maintaining quality. The company also supported rationing education, helping customers maximize limited resources.
Post-war, M&S played a key role in Britain’s recovery. The 1940s saw the expansion of its food halls, offering fresh produce and packaged goods as rationing eased. By 1948, food accounted for 20% of sales, a trend that would accelerate. The St Michael brand grew, with clothing lines reflecting post-war optimism through brighter colors and modern designs.
In 1950, M&S opened its first self-service store in Wood Green, London, inspired by American supermarkets. This format reduced labor costs and improved efficiency, allowing customers to browse freely. By 1959, M&S operated 250 stores, and its Baker Street headquarters expanded to accommodate a growing bureaucracy. Simon Marks’ focus on quality control, employee welfare, and supplier partnerships ensured M&S thrived in the booming post-war economy.
Retail Dominance: 1960s–1980s
The 1960s marked M&S’s ascent as Britain’s leading retailer. Under Simon Marks (until his death in 1964) and successors like Israel Sieff and Marcus Sieff, M&S expanded its store network and diversified its offerings. By 1969, it operated 280 stores and achieved £500 million in annual sales. The company introduced ready-to-eat meals, chilled foods, and exotic produce like avocados, capitalizing on Britain’s growing culinary curiosity.
M&S’s clothing lines became fashion staples, offering timeless designs at accessible prices. The introduction of machine-washable fabrics and synthetic blends like polyester appealed to busy households. The company also embraced social trends, launching maternity wear and larger clothing sizes to cater to diverse customers. By the 1970s, M&S was the UK’s largest clothing retailer, with a 14% market share.
International expansion began cautiously. In 1975, M&S opened its first European stores in Paris and Brussels, followed by Canada in 1973. These ventures aimed to replicate the UK model but faced challenges due to differing consumer preferences. Domestically, M&S modernized its stores, introducing escalators, air conditioning, and brighter interiors to enhance the shopping experience.
The 1980s saw M&S diversify beyond retail. In 1986, it launched the M&S Chargecard, a store credit card that boosted customer loyalty and provided valuable purchasing data. The company also entered financial services, offering unit trusts and pensions by 1988. Food innovation continued, with M&S introducing premium ready meals and organic produce, positioning itself as a leader in quality food retail. By 1984, M&S’s centenary, it operated 300 stores and employed 70,000 people, with pre-tax profits exceeding £200 million.
Challenges and Decline: 1990s–2000s
The 1990s began with M&S at its peak, boasting a £1 billion profit in 1997, a first for a UK retailer. However, complacency and external pressures led to a sharp decline. M&S’s traditional clothing lines, focused on classic styles, struggled to attract younger shoppers drawn to trendier high-street competitors like Topshop and Zara. The 1998 Asian financial crisis and a strong pound hurt clothing sales, as M&S relied heavily on Far Eastern suppliers.
Internal missteps compounded the issue. Under CEO Richard Greenbury, M&S resisted modernizing its supply chain and store designs, alienating customers. In 1999, profits plummeted to £546 million, and the share price halved. The company closed its Canadian stores in 1999 and scaled back European operations, focusing on the UK. Public criticism of “frumpy” clothing and poor customer service further tarnished the brand.
The early 2000s were turbulent. M&S cycled through CEOs, including Luc Vandevelde and Roger Holmes, in a bid to recover. In 2004, retail magnate Philip Green launched a £9.1 billion takeover bid, which M&S rejected under new CEO Stuart Rose. Rose’s recovery plan emphasized store refurbishments, trendier clothing, and an expanded food range. The 2006 launch of the “Per Una” clothing line, designed by George Davies, targeted younger women, while premium food ranges like “Dine In” meals boosted sales.
Digital Era and Sustainability: 2010s–2020s
The 2010s brought new challenges as online retail disrupted traditional high-street models. M&S was slow to embrace e-commerce, launching a robust online platform only in 2014. Under CEO Marc Bolland (2010–2016), M&S invested £2.3 billion in store upgrades, supply chain improvements, and digital infrastructure. The company also expanded its Simply Food convenience stores, capitalizing on its strong food reputation.
Clothing remained a weak spot, with M&S struggling against fast-fashion giants and online retailers like ASOS. In 2016, Steve Rowe, a 27-year M&S veteran, became CEO, launching the “Never the Same Again” transformation plan. Rowe closed underperforming stores, reduced clothing lines by 25%, and focused on casual, sustainable fashion. M&S also partnered with celebrities like Holly Willoughby and Rosie Huntington-Whiteley to refresh its image.
Sustainability became a priority. In 2007, M&S launched “Plan A,” a £200 million initiative to reduce carbon emissions, eliminate waste, and source ethical products. By 2020, Plan A evolved to include commitments to net-zero emissions by 2040 and 100% recyclable packaging. M&S’s food division led in sustainability, offering Fairtrade coffee, free-range eggs, and RSPCA-assured meat.
The COVID-19 pandemic in 2020 hit M&S hard, forcing store closures and accelerating its digital shift. M&S partnered with Ocado in 2019, investing £750 million for a 50% stake in Ocado’s UK retail business, enabling nationwide online grocery delivery. The move proved prescient, as online sales soared during lockdowns. However, clothing sales slumped, leading to 7,000 job cuts and the closure of 110 stores by 2022.
Reinvention and Future Outlook: 2020s–Present
Under CEO Stuart Machin (appointed 2022), M&S has undergone a renaissance. Machin’s strategy focuses on three pillars: quality products, digital innovation, and store modernization. In 2023, M&S reported its highest profits in a decade (£475 million), driven by strong food sales and a clothing recovery. The food division, now 60% of revenue, emphasizes premium own-label products, with innovations like plant-based ranges and “Remarksable Value” budget lines.
Clothing has regained ground through collaborations with brands like Nobody’s Child and Jaeger, acquired in 2020. M&S’s “Res brands, emphasizing casual and sustainable fashion. The company also expanded third-party brands in stores, a departure from its own-label tradition, to attract younger shoppers.
Digitally, M&S enhanced its app, loyalty program (Sparks), and click-and-collect services. Store investments include experiential elements, like in-store bakeries and wine bars, to compete with rivals like Waitrose. Internationally, M&S operates over 1,400 stores in 60 countries, with growth in India and the Middle East, though the UK remains its core market.
Sustainability remains central. M&S’s 2025 goals include 100% renewable energy and zero food waste. Community initiatives, like partnerships with food banks and youth charities, reinforce its social impact. However, challenges persist, including competition from discounters like Aldi and economic pressures like inflation.
Conclusion
Marks & Spencer’s 140-year history reflects resilience, innovation, and adaptation. From Michael Marks’ penny bazaar to a global retailer with £12 billion in revenue, M&S has navigated wars, recessions, and retail revolutions. Its focus on quality, sustainability, and customer trust has sustained its relevance, while recent reinventions signal a promising future. As M&S balances heritage with modernity, it remains a British institution poised for continued evolution.
