LONDON (Reuters) – Marks & Spencer’s food sales have grown by just 4.3% over the past year, according to recent data. This slowdown follows a cyberattack in April that disrupted operations.
Research firm NielsenIQ reported that M&S’s grocery growth dropped from 9.1% the previous month and 10.8% before that. Despite this decline, the company’s market share remained stable at 3.6%.
The cyberattack forced M&S to pause online clothing orders and took some systems offline. This decision affected food availability, leading to increased waste and higher logistics costs. In May, M&S estimated the attack would cost them around £300 million ($406 million) in lost profits.
By June 10, M&S resumed online clothing orders after a 46-day break. However, click and collect services are not yet back up and running.
Many industry observers note that competitors like Tesco and Sainsbury’s continue to perform well. Discount retailers like Aldi and Lidl, as well as the online supermarket Ocado, are also thriving.
This situation at M&S reflects a broader trend in retail, where cyber threats are becoming more common. According to a recent report from Cybersecurity Ventures, global cybercrime costs are expected to reach $10.5 trillion annually by 2025. Retailers must adapt and strengthen their defenses to protect both customers and their bottom lines.
With the rise of online grocery shopping, companies that falter during disruptions may lose market share to more resilient competitors. The recent cybersecurity challenges at M&S serve as a reminder of how critical it is for businesses to invest in robust IT infrastructure and cybersecurity measures.
For more details on the impact of cybercrime on businesses, you can refer to this report from Cybersecurity Ventures.
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Marks & Spencer, cyberattack, sales growth, grocery sales growth