From a penny bazaar to a retail giant, the turbulent history of Marks & Spencer

Cultures · Published 3 October 2026 Swipe more like this →

In short: Founded in 1884 as a humble market stall, Marks & Spencer evolved into an iconic British institution. Yet, the retailer has faced dramatic swings, from record-breaking profits to sudden slumps, controversial store closures, and intense scrutiny over its supply chain ethics and high-profile battles over urban development.

The company originated in Leeds when Michael Marks, a Polish migrant, used a £5 loan to establish a penny bazaar. In 1894, he partnered with Thomas Spencer, a bookkeeper. By the mid-20th century, under the leadership of Simon Marks, the firm had become a retail empire, famously selling 99% British-made goods under the 'St Michael' brand. It pioneered innovations like the packaged sandwich in 1980 and established a reputation for quality that defined the British high street for decades.

However, the company's trajectory has been marked by volatility. In 1998, it became the first British retailer to exceed £1 billion in pre-tax profit, only to suffer a sharp decline shortly after due to eroded customer loyalty and rigid business practices. The 21st century brought a series of turnaround plans, including significant store culls—aiming for a footprint of 180 full-line and 420 food stores by 2024—and leadership changes, such as the appointment of Stuart Machin as CEO in 2022.

M&S has also navigated complex modern challenges. Its attempt to redevelop its flagship Oxford Street store sparked a multi-year legal battle over heritage and environmental impact, eventually receiving approval in 2024. Simultaneously, the brand has faced reputational crises regarding animal welfare, with undercover investigations revealing mistreatment at farms linked to the RSPCA Assured scheme. Despite these hurdles, the company continues to invest in digital transformation, such as acquiring the intellectual property of the fashion marketplace Thread to enhance its online personalization.

The retailer's story remains a study in the difficulty of maintaining a legacy brand in a shifting market. From the early days of the penny bazaar to the complexities of modern corporate governance and ethical sourcing, M&S reflects the broader challenges faced by long-standing institutions attempting to balance tradition with the demands of a globalized, digital-first economy.

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