M&S expects £300m profit impact as cyberattack disrupts operations until July
Marks & Spencer has warned that a 'major cyber incident' will cause a £300 million reduction in operating profits this year. The retailer confirmed that the disruption began over the Easter weekend and continues to impact multiple areas of its business. Online sales for fashion, home, and beauty have been 'heavily impacted', according to the company's financial update. The scale of the breach prompted a pause in website orders and led to visible effects in physical stores, including widespread stock issues. 'It has been challenging, but it is a moment in time,' said Chief Executive Stuart Machin, who expressed confidence in the company's recovery.
As a direct result of the breach, customers encountered empty shelves and halted online services throughout late April and May. Some stores, including major locations like Paddington and Cambridge, experienced temporary stock shortages. While food availability was also disrupted, M&S stated this area is 'already improving' as systems are restored. In-store operations were affected as the company overhauled internal IT infrastructure. M&S clarified that 'payments and click and collect orders were also impacted,' but reassured customers that improvements are now underway.
One of the more serious aspects of the breach involved the theft of personal customer data. M&S confirmed that hackers accessed information which may include names, email addresses, postal addresses, and dates of birth. While no financial data exposure was reported, the company acknowledged the seriousness of the breach. 'We are now focused on recovery,' said Machin, adding that safeguarding customer trust remains a top priority. Security and legal teams are continuing to assess the extent of the breach and guide mitigation strategies.
UK authorities believe a known group of English-speaking teenage hackers may be behind the M&S incident. 'We are looking at the group that is publicly known as Scattered Spider,' said Paul Foster of the National Crime Agency. The agency is coordinating with cybersecurity partners to trace the source of the attack and prevent further incidents. According to the BBC, the same group has also targeted other UK retailers like Co-Op and Harrods. Google confirmed that attacks believed to be by this group are also occurring in the U.S., adding urgency to global defensive efforts.
Despite the financial hit and customer inconvenience, M&S leadership is positioning the breach as a moment of transformation. There is no change to the company's growth strategy, and the event may even help speed up its execution. 'The incident allows us to accelerate the pace of change as we draw a line and move on,' said Machin. M&S emphasized that insurance and internal cost management will help offset some of the financial losses. Shares, which had recently reached a nine-year high, fell after the incident, but executives remain focused on long-term stability.
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