What: M&S has overhauled its Sparks loyalty scheme, replacing points with spendable cash rewards and leveraging advanced AI to offer tailored benefits and partner rewards.

Why it is important: This transformation reflects the retail industry’s shift toward real-money rewards, digital wallets, and AI-powered personalisation as key drivers of customer loyalty and engagement.

M&S has unveiled a major transformation of its Sparks loyalty programme, moving away from traditional points-based rewards to a system that offers customers real-money incentives and personalised benefits. The new digital Sparks wallet allows shoppers to earn cash rewards across all categories, with additional bonuses for cross-category purchases and partner activities, such as booking holidays with Virgin Atlantic. This overhaul is powered by advanced AI and data analytics, enabling M&S to deliver more relevant, timely, and seamless offers tailored to individual shopping habits. The programme also encourages customers to explore new areas of the store, rewarding discovery and engagement beyond their usual purchases. By prioritising transparency, flexibility, and immediate value, M&S is responding to evolving consumer expectations and the broader industry trend toward digital wallets and omnichannel loyalty. The new Sparks scheme positions M&S at the forefront of customer-centric retail, aiming to deepen engagement and foster long-term loyalty in a competitive market.

IADS Notes: M&S’s transformation of its Sparks loyalty programme is part of a sweeping industry shift toward real-money rewards, AI-driven personalisation, and customer-centric value creation. Retailers like Selfridges, Harvey Nichols, and Gymshark have all reimagined their loyalty strategies in the past year, moving away from traditional points-based systems to focus on direct, spendable rewards and experiential engagement (Drapers, May 2025; Fashion United, January 2026). The integration of advanced AI and data analytics is now central to delivering tailored offers, seamless experiences, and increased engagement, as seen in Selfridges’ “Unlocked” programme and Harvey Nichols’ new tiered structure (Inside Retail, May 2025; Fashion United, January 2026). This evolution is driven by declining shopper loyalty and rising consumer demand for transparency, flexibility, and immediate value, with omnichannel and partner rewards emerging as key differentiators (Fashion Network, November 2025; Journal du Net, November 2025). The most successful retailers are leveraging digital wallets, unified data, and cross-category incentives to foster deeper relationships and long-term retention, setting a new standard for loyalty in the digital age.

M&S transforms Sparks loyalty programme