Britain's M&S Restores Click and Collect Services 15 Weeks After Systems Hacked
After a nearly four-month hiatus, Britain's Marks & Spencer (M&S) has finally restored its click and collect services for clothing. The 141-year-old retailer had stopped taking orders through its website and app for clothing and home deliveries and collection from stores on April 25, following the disclosure of a "cyber incident" that impacted its earnings during the period.
The decision to reinstate click and collect services marks a significant turning point in M&S' efforts to recover from the cyber attack. Initially, the retailer had resumed taking online orders for delivery from June 10, but the suspension of click and collect services remained in place. The reinstatement has sent shares in M&S up by 2 per cent, paring its losses to 10 per cent for the year.
According to Investec analyst Kate Calvert, the reinstatement of click and collect services is a key "back to normal" signal from a consumer perspective. She does not expect the hack to impact M&S' long-term valuation or growth prospects.
The Cyber Attack: A Timeline
M&S had disclosed on April 25 that it was managing a "cyber incident." The attack, which is believed to have been carried out by the hacker group DragonForce, resulted in significant losses for the retailer. In May, M&S forecast that the hacking of its systems would cost it about 300 million pounds ($404 million) in lost operating profit in its 2025/26 financial year.
The attack also led to M&S taking other systems offline as part of its management of the hack and data theft. This reduced both clothing and food availability in stores, further denting sales. Rivals, such as Next in clothing and Sainsbury's in food, have been beneficiaries of the disruption.
The Investigation
UK police arrested four people as part of their investigation into the hack and other attacks on the Co-op and Harrods in July. Chairman Archie Norman last month told lawmakers that M&S believed the ransomware attack was carried out by the hacker group DragonForce.
M&S CEO Stuart Machin had told investors in early July the group would be over the worst of the fallout from the incident by August.
The Impact on Consumers
For consumers, the reinstatement of click and collect services is a welcome relief. The service allows customers to order items online and pick up in stores, providing convenience and flexibility.
"The reinstatement of click and collect is the key 'back to normal' signal from a consumer perspective," said Investec analyst Kate Calvert. She does not expect the hack to impact M&S' long-term valuation or growth prospects.
The Future of Click and Collect
With click and collect services now restored, it remains to be seen how consumers will respond. However, with many retailers investing heavily in e-commerce and digital services, the future of click and collect looks bright.
M&S has committed to restoring its full online delivery offers across fashion, homeware, and beauty products. The retailer has also returned online orders to any M&S store, providing customers with a seamless shopping experience.