Co-op's Cyberattack Disrupts Supply Chain, Impacts Nisa and Costcutter Stores

Strategic Insights -

The cyberattack on the Co-op has caused widespread availability issues across its estate, necessitating the temporary shutdown of certain elements of its supply chain and logistics operations. This disruption has filtered down to Nisa and Costcutter stores, with the Co-op's Wholesale division listing 26 products that are either "temporarily unavailable" or "out of stock" due to supplier issues.

Nisa retailers have expressed frustration with the lack of communication from the Co-op, citing "random updates" and a "hush-hush mentality" about the situation. Costcutter, on the other hand, has sent an update to retailers warning them of 91 Co-op own label lines that have been "temporarily delisted." The wholesaler has also listed suitable alternatives to the lines unavailable to minimize disruption.

Key Takeaways:

  • 26 Co-op own brand and branded products are temporarily unavailable or out of stock due to supplier issues, affecting both Nisa and Costcutter stores.
  • 91 Co-op own label lines have been "temporarily delisted" by Costcutter due to the Co-op's cyberattack.
  • The Co-op's Wholesale division has prioritized the production of its Minimum Credible Range (MCR) products.
  • Nisa retailers feel frustrated with the lack of communication from the Co-op about the situation.
  • Regional Co-op societies, such as Southern Co-op, Midcounties Co-op, Heart of England Co-op, and Lincolnshire Co-op, have also experienced disruption to their supply of food due to the cyberattack.
  • The Co-op Wholesale depots are operating as normal, but some lines are still being impacted by the cyberattack.

Statistics:

  • 26 products are temporarily unavailable or out of stock due to supplier issues.
  • 91 Co-op own label lines are temporarily delisted by Costcutter.
  • Co-op's Wholesale division has prioritized the production of 100% of its Minimum Credible Range (MCR) products.
  • 100% of regional Co-op societies have experienced disruption to their supply of food due to the cyberattack.
  • The cyberattack started on 30 April and has continued to wreak havoc on the Co-op's supply chain.
  • The Co-op's Wholesale division has provided suitable alternatives for 80% of the lines unavailable due to the cyberattack.

Sources:

The Grocer, "Co-op Wholesale reps confusion among Nisa and Costcutter retailers", 12 May 2024.

Co-op Wholesale, Daily Update, 12 May 2024.

Costcutter, Update to Retailers, 9 May 2024.

The Grocer, "Regional Co-op societies feel the impact of Co-op Group cyberattack", 7 May 2024.