Frances Griss looks at the history of one of the UK's best-known retailers.

When Michael Marks set out his first stall at Leeds Kirkgate Market in 1884, he could not have known that it was the start of a British institution. Marks knew that people liked a bargain and soon the slogan "Don't Ask the Price, It's a Penny" applied to everything on sale. The merchandise included small items of hardware, wooden spoons and anything else he could buy and sell at a profit.

One market stall was not enough to keep him busy all week, so he began trading in other towns as well.

For the Russian-born Polish refugee, the market stall began as just a way to make a living, but he had ambition. Ten years later, Michael opened his first shop on the ground floor of the family home in Cheetham Hill Road, Manchester.

A turning point came in 1894 when he went into partnership with Tom Spencer, a former cashier with wholesaler Dewhirst.

Expansion continued apace, and the company began to move away from market stalls to premises such as Cross Arcade, in Leeds. Tom Spencer died in 1905, followed by Michael Marks in 1907. But they passed the torch on to the next generations of their families.

At the time, M&S was a young company with revolutionary ideas, including buying directly from manufacturers, which they began in the 1920s. The year 1926 also saw the company launch itself on the stock market followed, two years later, by the launch of one of the country's most famous trade marks, St Michael.

The arrival of war in 1939 meant companies had to deal with the restrictions of rationing, but M&S remained at the forefront, advising the Government on the production of quality clothes. Staff also raised enough money to buy a Spitfire, The Marksman, for the RAF.

Over the years, the range of merchandise continued to expand, and more and more of the stock became own-label products. By 1956, everything M&S sold carried the St Michael brand.

In 1964, chairman Simon Marks, son of the founder, died after 56 years with the company. He was replaced by Israel Sieff.

By 1975, M&S had ambitions abroad, and opened stores in Paris and Brussels. At home, the company had become a giant of the high street with a reputation to match. A large proportion of the nation was buying their underwear from a store that could do no wrong.

Ten years later, the company moved into personal finance with the launch of its charge card, but the glory days were coming to an end.

Amid criticism that the company had lost contact with its core customers, profits started falling, and so did the share price. Various strategies were employed to reverse the decline of M&S, including the launch of specialist clothes ranges, such as Salon Rose lingerie, by Agent Provocateur, and per una, by George Davies.

Joint chairman and chief executive Luc Vandevelde took over in 2000 amid hopes of great things but he failed to deliver and current chief executive Stuart Rose was appointed in May last year to continue the company's fightback in an ever more competitive retail market.

Echos of M&S's humble beginnings can still be found in the Grainger Market in Newcastle, where shoppers can find the company's one remaining market stall. This, the smallest M&S in the country, sells St Michael merchandise.

And, despite all the company has been through in recent years, it remains at the heart of the national identity and a presence on almost every high street in the land.