Marks & Spencer acquires Thread specialist fashion tech in personalisation push

Marks & Spencer has bought property including the source code and algorithms developed by Thread and is hiring 30 of its former data scientists, software engineers and styling and creative colleagues. 

M&S said the deal would create “the opportunity to integrate the cutting-edge, proprietary tech into the M&S.com platform to accelerate personalisation and deliver a unique customer experience”. 

The personalisation capabilities will be deployed across M&S’ clothing business, including the third-party brands it sells.  

M&S said over the last few years it has “generated substantial value through customer data, personalising offers and language and providing repeat purchase and product recommendations”. Between 20% and 25% of “all digital interactions” are anticipated to be personalised this year.

Personalisation initiatives such as outfit recommendations have been successful. ‘Frequently bought together’ recommendations have added £20m of incremental revenue in the last 12 months and that figure is expected to rise to £100m on an annualised basis.

The former Thread staff, including co-founders Kieran O’Neill and Ben Phillips, will create a “personalised discovery team” at M&S.

M&S co-chief executive Katie Bickerstaffe said: “The acquisition of Thread is the perfect example of a ‘buy not build’ approach – enabling us to accelerate our personalisation strategy by integrating the market-leading tech on M&S.com in under 12 months. We’re taking personalisation to the next level to inspire our customers with tailored outfit inspiration.

“We have been working hard to deliver better, more stylish ranges and this algorithm will also put more of our great product in front of the customer, whilst further unlocking the potential of our third-party brand strategy, by adding outfit-completing product ideas.”