
M&S betting on customer patience as cyber-attack threatens to ruin 2025's strong start
Marks & Spencer was enjoying a strong start to 2025 thanks to a fashion revival and the warm spring weather. That has now been seriously undermined as the retailer scrambles to deal with disruption caused by a massive cyber-attack it first revealed a week ago.
At a time when M&S – alongside most major retailers – are pushing more automation on its customers and workers, industry insiders say the retailer's staff have been forced to return to pens, paper and clipboards to check stock in stores as internal systems have been put on hold.
Every second counts now, for M&S's bottom line and for its reputation. Shoppers report problems with the use of gift cards in stores while thousands of orders made on or after 23 April have been cancelled. On Monday, it emerged that the difficulties were now affecting Ocado, as M&S's deliveries of a small number of packaged foods to the online specialist it co-owns, were hit.
The cyber-attack first hit stores just over a week ago, with M&S pausing contactless payments and the collection of online orders last Tuesday. On Thursday, those systems mostly restarted but M&S halted all orders on its website – which accounts for just over a third of clothing and homewares sales – amounting to almost £3.8m a day.
As Patrick O'Brien, a retail analyst at GlobalData, says, cyber-attacks can have major consequences for businesses. 'This is one of the most damaging cyber-attacks on a major UK retailer we have seen, the worst since Carpetright last year, which tipped an already very weak retailer into administration,' he says.
M&S is a much stronger and larger business than Carpetright and not likely to be at risk of collapse, but the attack is having a direct impact on sales and as O'Brien says, the longer the disruption goes on, the more likely customers are to take their money elsewhere.
While most of the problems did not start until the later part of the Easter bank holiday, according to M&S, the attack cut off a run of buoyant trading. What M&S says was a separate incident also affected contactless payments in stores on the Saturday before Easter.
Before then, sales had jumped almost 9% in the three months to 30 March, according to industry analysts Kantar, well above the wider fashion industry, as it continued to win over shoppers.
M&S may derive some comfort from the fact that this is not happening during a peak trading period such as before Easter or Christmas, and Clive Black, M&S's house broker at Shore Capital, said he expected the retailer to recoup any losses resulting from the attack via insurance.
Sign up to Business Today
Get set for the working day – we'll point you to all the business news and analysis you need every morning
after newsletter promotion
'The financial impact will be a zero sum game,' he says. 'I don't believe there will be enduring damage unless they don't manage to fix it.'
'There will be Mr & Mrs Angry from Tunbridge Wells but most people can see in the last decade that M&S has materially improved as a business and there will be some sympathy. This is not something it brought on itself but a malevolent force.'
O'Brien agrees: 'Customers are surprisingly forgiving.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Reuters
an hour ago
- Reuters
UniCredit CEO sees Commerzbank bid as too expensive, slim chances of BPM deal
MILAN, June 11 (Reuters) - UniCredit ( opens new tab CEO Andrea Orcel said on Wednesday he currently saw little scope to advance his acquisition strategy, given that Commerzbank ( opens new tab had become too pricey and Italy was effectively blocking a takeover of Banco BPM ( opens new tab. Veteran investment banker Orcel arrived at UniCredit in 2021 vowing to use M&A to speed up growth, provided deals meet strict criteria that would allow him to retain the returns his shareholders have enjoyed thanks to high interest rates and tight cost control. Having driven a seven-fold increase in UniCredit's share price, Orcel last year moved on Commerzbank and smaller domestic peer Banco BPM, sparking angry reactions in both Berlin and Rome. On Tuesday, Germany's finance minister said a letter that Chancellor Friedrich Merz had written to Commerzbank staff to express opposition to UniCredit was "an important signal" about the government's stance. Speaking to CNBC television in Berlin after attending a financial conference organised there by Goldman Sachs, Orcel said Commerzbank's share price had anyway risen excessively, making a bid an unattractive option. "No, at this level, we would not see value for our investors [in an offer for Commerzbank]," he told CNBC. "We're very happy for the gain we've had on the 30% [stake] but we wouldn't see value for our investors," he said. UniCredit has acquired 28% of Commerzbank and Orcel said it expected by the end of the month to complete the steps that allow it to convert into equity the two-thirds of the stake which UniCredit still owns as derivatives. UniCredit would then decide whether to consolidate the stake and it would in that case want to "exercise the power" that comes with being the biggest shareholder. Orcel reiterated he had given himself until 2027 to take a final decision on the stake. As for Banco BPM, Orcel said the chances of completing the takeover offer were no higher than 20%. The conditions Rome has imposed to authorise the bid, using 'golden powers' it has to protect national security interests, are unclear and expose UniCredit to fines worth up to 20 billion euros, Orcel said. "The probability is 20% or less depending on whether the government clarifies or does not clarify those topics," he said.


Metro
an hour ago
- Metro
Nintendo Switch 2 officially breaks record for fastest-selling console ever
Nintendo has announced the worldwide sales figures for the Switch 2 after four days, and they're more than any other console in history. After insiders claimed the Switch 2 was set to break worldwide sales records, Nintendo has confirmed the console has done exactly that. In a post on X, Nintendo announced the Switch 2 has sold over 3.5 million units worldwide in its first four days, making it not only the fastest-selling Nintendo console ever but the fastest-selling console of all time. This means the Switch 2 is already outpacing the original Switch, which managed 2.7 million units within its first month in 2017. Nintendo set a target of 15 million sales for the Switch 2 by the end of March next year, and if stock remains plentiful, these early figures suggest it will surpass that number easily. While Nintendo has only talked about the console's sales in terms of the company's own history, it appears to be the fastest-selling console ever. The PlayStation 5 shipped (not sold) 3.4 million units within its first four weeks, while the PlayStation 4 sold 2.1 million units within its first month. Sony's PlayStation 5 was subject to significant stock shortages amid the pandemic, so the Switch 2's success is a reflection of Nintendo's efforts to ensure there's plenty of supply. Prior to launch, Nintendo said it planned to have enough consoles to counter scalpers, and it seems like that strategy has worked. Sign up to the GameCentral newsletter for a unique take on the week in gaming, alongside the latest reviews and more. Delivered to your inbox every Saturday morning. As for UK numbers, the Switch 2 is the fastest-selling Nintendo console ever in the country, but it is the fourth overall behind the Xbox Series X/S, the PlayStation 4, and the PlayStation 5. The UK has always been Nintendo's least successful major market though, so that isn't surprising. More Trending The Switch 2's success is particularly impressive considering its launch line-up, outside of Mario Kart World, is devoid of essential exclusives from Nintendo. There is strong third party support but only for existing titles, some of which are fairly old. The only two exclusive third party titles are Konami's Survival Kids and the budget-priced Fast Fusion. Nintendo's first party output is set to expand in the coming months, with Donkey Kong Bananza, Metroid Prime 4: Beyond, Kirby Air Riders, and Pokémon Legends: Z-A all expected to arrive before Christmas. Nintendo also recently announced a Splatoon spin-off called Splatoon Raiders, although it's unclear when it will be released. Email gamecentral@ leave a comment below, follow us on Twitter. To submit Inbox letters and Reader's Features more easily, without the need to send an email, just use our Submit Stuff page here. For more stories like this, check our Gaming page. MORE: Games Inbox: When will Mario Kart World DLC be released? MORE: Nintendo Switch 2 comparison: how do Switch 1 games play on the new console? MORE: Call Of Duty is coming to Nintendo Switch 2 promises Activision and Microsoft


Glasgow Times
2 hours ago
- Glasgow Times
Award-winning Aldi, Co-op, Asda, Sainsbury's and Tesco wines
From a £7 Portuguese red to a £22 vintage Champagne, UK supermarkets picked up dozens of top medals for their own-brand bottles, with wines from Aldi, Tesco, Sainsbury's, M&S, Co-op, Asda and Waitrose going head-to-head with fine wine producers from around the globe. In one of the most competitive judging seasons yet, wines from major UK grocers earned Gold, Silver and Bronze medals across every style, from English sparkling to Barolo, Rioja, and Sauternes – many at everyday prices. Top medal winners from the IWSC 2025 Pop these award-winners in your trolley this weekend Aldi Animus Douro Reserva 2022 – Silver (94 points), £6.99 A full-bodied Portuguese red, praised for its richness and structure. One of the best-value medallists of the year. Asda Extra Special Rioja Reserva 2019 – Silver (94 points), £8 Classic vanilla, spice, and red fruit Rioja profile, praised for structure and ageing potential. M&S Collection Picpoul de Pinet 2023 – Silver (91 points), £9 A crisp, coastal white from the Languedoc – ideal summer drinking. Sainsbury's Taste the Difference English Bacchus 2023 – Silver (92 points), £9.50 A fresh, zesty white made in England, earning high praise in a competitive aromatic white category. Tesco Finest Sauternes (37.5cl) – Gold (92 points), £12 A classic French dessert wine, offering luscious, honeyed fruit for under half the price of château equivalents. Sainsbury's Taste the Difference Barolo 2019 – Silver (90 points), £14 An accessible expression of Italy's king of wines, delivering dark cherry and rose petal notes. Co-op Les Pionniers Vintage Champagne 2013 – Gold (95 points), £22 The only supermarket Champagne to win Gold. A standout vintage with complex brioche and citrus notes. Sainsbury's Taste the Difference Châteauneuf-du-Pape 2022 – Gold (95 points), £16 A bold southern Rhône red made in partnership with top estates, described by judges as 'impressively elegant.' M&S Collection Saint Gall Premier Cru Champagne NV – Gold (95 points), £28 Elegant, chalky, and finely textured – made in partnership with a historic grower in Épernay. Waitrose No.1 English Sparkling Brut NV – Silver (91 points), £22.99 One of the UK's most awarded sparkling wines, holding its own against Champagne. David Kermode, IWSC judge and broadcaster, says: "These results are a wake-up call for anyone who still associates great wine with high prices. "The best supermarket own-label ranges are now being made by some of the most respected producers in the world and the blind tasting at IWSC proves just how well they perform." Christelle Guibert, CEO of the IWSC, added: "At the IWSC, every wine is judged blind by a panel of experts from across the globe. What makes this year especially exciting is the number of affordable supermarket wines standing out alongside premium bottles. It's proof that great winemaking doesn't have to come with a luxury price tag." Recommended reading: The International Wine & Spirit Competition (IWSC) is widely regarded as the gold standard for wine and spirit quality. With entries judged blind by Masters of Wine, sommeliers, buyers and producers, its rigorous methodology ensures medals are awarded purely on taste and quality – with judges never seeing the bottle or label, eliminating all bias or visual influence. Celebrated globally for its integrity and expertise, the IWSC remains one of the most respected and trusted competitions in the drinks industry.