Norman and Chief Executive Steve Rowe believe the pandemic has masked progress the 137-year-old group has made in its latest attempt at a turnaround after decades of failures.

They have focused on transforming the culture in M&S, improving the quality and value of its clothing and food products, while reshaping its store estate and investing in technology and e-commerce, including a venture with online supermarket Ocado.

"We sort of feel we're emerging from the pandemic and lockdown, like emerging from a chrysalis, a new and reshaped business," Norman told shareholders attending M&S's annual general meeting, held virtually for a second successive year.

"We think we're going to surprise a few people, not just hopefully with our financial performance but also with the things we do to demonstrate that M&S has really changed," he said.

Norman, chairman since 2017, said the management had moved on from fixing the basics in the business.

"We're now into a new phase and we'd like to think that new phase is about growth," he said, adding this meant expanding sales and market share.

"We're here to create a growing business, absolutely not in the business of managing decline, we're investing for the future," he said, adding the retailer was "very confident" about the year ahead.

In May, M&S reported an 88% slump in 2020-21 profit but forecast a rebound in 2021-22.

Shares in M&S closed down 2% at 154.4 pence, paring 2021 gains to 13% and valuing the business at 3 billion pounds ($4.1 billion).

($1 = 0.7259 pounds)

(Reporting by James Davey; Editing by Edmund Blair)

By James Davey