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Cyberterrorism

Marks & Spencer Faces £300 Million Cyber Attack Costs Amid Business Disruption

Strategic Insights

— 2 min read

Marks & Spencer is facing significant disruption to its online shopping and business operations following a major cyber attack that occurred around the Easter weekend. The company said the attack, caused by "human error," will cost around £300 million and has resulted in empty shelves and halted online orders. The incident has also led to the theft of customer personal data, including names, email addresses, postal addresses, and dates of birth. M&S has reported a higher-than-expected adjusted pre-tax profit of £875.5 million for the year to March, but its online sales and profits in its fashion, home, and beauty business have been heavily impacted.

Key Takeaways:

  • The cyber attack caused by "human error" will result in £300 million in costs for Marks & Spencer.
  • The company's online shopping and business operations are expected to continue being disrupted through to July.
  • Customer personal data was stolen in the attack, including names, email addresses, postal addresses, and dates of birth.
  • M&S has reported a higher-than-expected adjusted pre-tax profit of £875.5 million for the year to March.
  • The company's online sales and profits in its fashion, home, and beauty business have been "heavily impacted."
  • Around 85% of M&S's online operations are expected to be restored soon, with a focus on certain parts of its operations first.
  • Clothing and home sales have been "resilient" in stores in recent weeks, while food sales were affected by reduced availability.
  • The company has reported "additional waste and logistics costs" after switching to manual processes following the attack.

Statistics:

  • £300 million: The estimated cost of the cyber attack to Marks & Spencer.
  • £875.5 million: The adjusted pre-tax profit reported by M&S for the year to March.
  • 8.7%: The increase in sales in M&S's food arm over the year.
  • £9 billion: The sales in M&S's food arm for the year.
  • 6%: The growth in M&S's revenues to £13.8 billion for the year.
  • 3.5%: The growth in fashion, home, and beauty sales for the year.
  • 85%: The percentage of M&S's online operations expected to be restored soon.
  • 420: The number of bigger food stores M&S plans to have by 2028.
  • 180: The number of full clothing, home, and food stores M&S plans to have by 2028.
  • 565: The number of M&S stores currently.
  • 2028: The year in which M&S plans to have 600 stores.
  • 6 months: The time frame in which M&S plans to invest in improvements to its technology.

Sources:

  • Marks & Spencer's press release on the cyber attack
  • Marks & Spencer's Full Year Results 2024/25
  • M&S News (@MandSnews) tweet on the cyber attack
  • PA Wire news articles on the cyber attack
  • Google I/O conference announcements

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