RTS 2026 review: £300 million cyber attack set Marks & Spencer back, says Chair Archie Norman

“Just over a year ago I got a call from our Security Officer. That was the beginning of my immersion in another (cyber) world,” said Archie Norman, M&S Chairman, at Retail Technology Show in London on 23rd April, when discussing the cyber attack that cost his company £300 million and slowed its digital transformation efforts.   

“Unbeknownst to me corporate insurance had just upped our policy to a £100 million cap, so that was lucky,” said Norman. “My advice is to go to the end in your scenario planning. Assume your system will go down and the rebuild will cost you… and if you suffer an attack give me a call!”  

“Watching others try and destroy your IT and systems - probably from the US - was hard,” admitted Norman, who was admirably candid about the famous cyber attack on the UK high street giant. Last year, it emptied in-store shelves and forced M&S to briefly return to manual order and replenishment processes, as well as locking it out of a growing digital operation. “We’d have been further ahead in our journey otherwise.”  

The re-expansion into international market was also discussed by Norman during the Q&A with moderator Kate Hardcastle. This would also likely have been much further advanced, but for the cyber setback.

Norman cited the retailers launch in the US with Nordstrom and Target in the fashion arena as evidence that M&S’ expansion plans remain on track after what he described as “25 years of drift” prior to his arrival last decade. “Our priority is to double the size of the food business as well,” he added.     

“The aftermath of a serious cyber attack, such as the one we suffered, lingers as well,” he continued. “There are still minor traces of it a year on. That said, we’re through it now. I view it as a rite of passage. I’m now looking forward to the year ahead.”  

Loyalty is brand led and not achievable via a card  

Part of Norman’s plans for 2026 include repowering M&S’ Sparks loyalty programme so that it can offer better personalised value and data led contextual targeting - for instance, when big family events happen.

“I don’t like the term loyalty - that comes from your brand and your service, not a piece of plastic card. Fundamentally, we’re trying to capture data,” said Norman, who was dismissive of those programmes that just offer consumers a voucher if they stop shopping with a retailer. “I don’t like that. Nor do I like dynamic pricing, which adversely impacts trust - the basis of M&S’ offering.”    

In regard to ‘yellow sticker’ discounting of food waste, however, Norman did see a role for dynamic pricing in that context. “Our mark downs there are designed to sell them to zero. AI can help with that.” In regard to moderator questioning from Hardcastle about the social media campaigner called the ‘food waste inspector’, who questioned the volume of waste, Norman said: “We met him and good luck to him in what he does.” He argued that their aims are the same - i.e. zero waste. 

On the horns of Hormuz for inflation

Unfortunately, 2026 doesn’t just involve expansion and technology repair and advancement plans. It also involves dealing with the inflationary impact of the Iran war for M&S and indeed all retailers. The closure of the Strait of Hormuz will obviously seep through, said Norman, “as we all rely on sea and air freight. There will be a direct cost impact. That is for us to carry. But our food suppliers are facing increased fertilizer and other costs and that will go up the chain.”

“Food inflation overall by September 2026 will tick up 1-2%. That wouldn’t be surprising,” added Norman. “The average household will be a couple of hundred pounds less well off.”

Batten down the hatches, then, for what could be another difficult year.    

2026 RTIH Innovation Awards

Cyber security will be a key focus area at the 2026 RTIH Innovation Awards.

The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.

Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.

Check out our 2025 winners here.

Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”

“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”

He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”

Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.