Britain's M&S Enters 2nd Week of Sales Disruption After Cyberattack

Marks & Spencer (M&S), one of the UK's most iconic retailers, is facing its second week of sales disruption following a devastating cyberattack that has left customers unable to place online orders for clothing and home goods. The attack, which was revealed last week, has already caused significant financial losses for the company, with over £700 million wiped off its stock market value.

The 141-year-old retailer stopped taking online orders through its website and app on April 25, following problems with contactless pay and click-and-collect services during the Easter holiday weekend. Chief Executive Stuart Machin apologized to M&S shoppers, promising to work day and night to resolve the issue as quickly as possible.

A 'Wake-Up Call' for Retailers

The cyberattack on M&S has sent shockwaves through the retail industry, with experts describing it as a "wake-up call" for businesses to take greater measures to protect themselves against sophisticated cyber threats. The National Cyber Security Centre (NCSC) has been working closely with the affected retailer, while the Metropolitan Police's Cyber Crime Unit and the National Crime Agency (NCA) are investigating the attack.

"These incidents should act as a wake-up call to all organizations," said NCSC CEO Richard Horne. "I urge leaders to follow the advice on the NCSC website to ensure they have appropriate measures in place to help prevent attacks and respond and recover effectively."

The Impact of Cyberattacks on Retailers

Cyberattacks are becoming increasingly common among British retailers, with many businesses facing significant financial losses and disruption to their operations. According to analysts, M&S' reliance on online sales makes it vulnerable to such attacks.

"All retailers are continually reviewing their systems to ensure they are as secure as possible," said Helen Dickinson, CEO of the British Retail Consortium. "Cyberattacks are becoming increasingly sophisticated, forcing retailers to spend hundreds of millions of pounds every year on defenses."

The Government's Response

The government has been criticized for its response to major cyberattacks, with Labour lawmaker Matt Western calling for greater action to prevent such threats. The NCSC is working closely with affected retailers, while the Metropolitan Police and NCA are investigating the M&S attack.

"As the Government concludes its consultation on proposals to counter ransomware, I hope its response treats these threats with the seriousness they clearly deserve," said Western.

The Financial Impact

M&S has declined to quantify the financial impact of the cyberattack so far. However, analysts have warned that a short-term profit hit is inevitable, given the disruption to online sales and potential broader impacts on the business.

Shares in M&S were down 2% on Friday, extending losses since Easter to about 9%. The company's stock market value has taken a significant hit, with over £700 million wiped off its value since the attack was revealed last week.

A Longer-Term Impact

Cyberattacks can have a lasting impact on businesses, as seen in the case of London transport operator TfL and blood test processing company in London, both of which faced significant disruption to their services for over three months after being targeted by cyber attackers.

Availability of some food products has also been affected in some M&S stores, while the disruption may be having a broader impact on the running of the business. Job postings have even been pulled from the company's website, highlighting the far-reaching nature of the attack.