Online orders at M&S resume, boosting share prices following a significant disruption due to a cyberattack causing approximately £300 million in damages.
Renewed Marks & Spencer Sales as Website Reboots Amid Steep Cyberattack Cost
Marks & Spencer's stocks spiked on Tuesday, climbing 3.9% to 373.8p, as the retailer revived its online store following a crippling cyber hack that idled online sales for over two months[1][2]. The company unveiled collections of popular fashion items and new products for delivery across England, Scotland, and Wales[1].
The hack, involving cyber criminals stealing customer data, has potentially set back the company by as much as £300 million[3]. This financial blow comes from the cease of online sales and temporary store disruptions last month[1][3].
John Lyttle, M&S's managing director of clothing, home, and beauty, assures that more products will gradually be added daily, with deliveries to Northern Ireland and in-store pick-up services expected to resume "in the coming weeks"[1].
The breach was initially attributed to "human error," allowing hackers to infiltrate the company's IT systems through a third-party access point[2]. Stuart Machin, M&S's CEO, has suggested that the cyber security issues may not be fully resolved until July[1].
While its 500+ stores remained open during this time, initial contactless payments were impacted, and there were some stock availability issues due to manual system adoption[2].
Despite heavy online sales and profits slump in the fashion, home, and beauty sector, Marks & Spencer seems to have made headway in food, with sales growth swelling almost double the overall market rate during the first month after the cyber attack[5].
As M&S seeks to minimize the estimated £300 million loss through cost management, insurance, and other remedial measures, it aims to lower this total by up to "half"[3]. The company, however, expects the overall impact on its online sales and profits for the fashion, home, and beauty segment to remain "significant"[5].
Sources:1. The Guardian2. BBC News3. Reuters4. The Telegraph5. City A.M.
- Marks & Spencer might consider investing in advanced technology for cybersecurity to prevent future attacks and ensure the continuity of their online business.
- In light of the financial losses incurred due to the cyber attack, Marks & Spencer could explore various finance options, such as insurance or grants, to help cover the estimated £300 million cost.
