Marks & Spencer faces prolonged online disruption following cyber-attack

Wednesday 21 May 2025 - 09:50

By: Dakir Madiha

Marks & Spencer faces prolonged online disruption following cyber-attack

Marks & Spencer has announced that its online services will remain disrupted until July due to a recent cyber-attack. The retailer has reported significant challenges since the incident, which has left customers unable to place orders online for nearly a month.

The company anticipates that the disruption will continue throughout June and into July as it works to restore and enhance its operations. Marks & Spencer estimates the financial impact of the attack will result in a profit reduction of approximately £300 million for the current year, surpassing analysts' expectations and reflecting a 30% decrease in profits.

Stuart Machin, chief executive of Marks & Spencer, addressed the situation, stating, "Over the last few weeks, we have been managing a highly sophisticated and targeted cyber-attack, which has led to a limited period of disruption." The cyber-attack occurred over the Easter weekend, initially affecting click-and-collect services and contactless payments. Shortly thereafter, the retailer posted a notice on its website apologizing for the unavailability of online ordering.

This ransomware attack is believed to have been orchestrated by a group known as Scattered Spider, which reportedly employs illicit tools from the cyber-crime service DragonForce. The same collective is thought to have targeted other retailers, including Co-op and Harrods; however, Marks & Spencer has experienced the most severe repercussions.

Mr. Machin emphasized, "This incident is a bump in the road, and we will come out of this in better shape, and continue our plan to reshape M&S for customers, colleagues, and shareholders." Currently, the retailer is three years into a turnaround strategy initiated when Machin took the helm in 2022. This strategy involves modernizing in-store offerings and revamping the company’s property portfolio, alongside updates to digital technology and back-office systems.

Despite these challenges, Marks & Spencer reported a 22% increase in profit before tax and adjusting items, amounting to £875 million, with sales rising by 6.1% in the financial year ending in March, just prior to the cyber incident.

The cyber-attack has underscored the necessity for "new and innovative ways of working," according to Machin. He added that the incident could potentially expedite necessary changes as the company seeks to move forward.

Nevertheless, the attack is expected to impact profits for the current year, particularly in the food sector, where reduced availability has affected sales. In the fashion, home, and beauty segments, the inability to process online orders has further compounded losses.

While insurance is anticipated to cover approximately one-third of the costs incurred, Marks & Spencer may still face additional expenses related to fines for data loss, legal proceedings, and investments needed to safeguard against future attacks.