Cyberattack's Impact on M&S Food Sales Minimized, According to NielsenIQ's Assessment
Marks & Spencer's Food Business Buckles under Cyberattack Impact
Despite facing challenges from a recent cyberattack, British retailer Marks & Spencer's food business experienced a significant 10.8% increase in food sales over the 12 weeks to May 17 compared to the previous year. However, the attack led to the suspension of online clothing orders and impacted food availability, contributing to an approximate loss of 300 million British pounds in operating profit for the company.
The cyberattack in April adversely affected M&S's department stores and other product categories such as fashion, home, and beauty due to reductions in online services and lower sales volumes. Although the food business showed resilience during the recovery phase, the attack left a significant mark on its financial performance.
Marks & Spencer's market share in the UK grocery sector inched up to 3.8%, albeit at a slower pace compared to previous reports. While specific data on market share changes following the cyberattack was not available, the company's struggles with product availability suggest a potential short-term competitive disadvantage.
Reacting swiftly to the cyberattack, M&S plans to expedite its technology enhancement from a two-year timeline to six months. This accelerated upgrade aims to address future cyber risks and bolster its position in the UK grocery market.
Overall, the cyberattack presented formidable challenges for M&S, causing a substantial loss in operating profit and potentially impacting its competitiveness in the UK grocery sector. The company is taking active measures to mitigate these effects and boost its long-term financial security.
Sources: 1. NielsenIQ, 2. Reuters, 3. Marks & Spencer's official announcements
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Keywords: Marks & Spencer, food sales growth, cyberattack impact on retail, M&S food business, NielsenIQ, UK grocery market share, Aldi and Lidl sales, online grocery services, retail industry trends 2023, sainsbury.
- The cyberattack on Marks & Spencer had a profound impact on various business sectors, not just food sales, as it also affected departments such as fashion, home, and beauty due to reductions in online services and lower sales volumes.
- The UK grocery sector witnessed a change in market share following the cyberattack, with Marks & Spencer's share inching up to 3.8%, although at a slower pace compared to previous reports.
- The food business of Marks & Spencer, despite showing resilience during recovery, faced significant losses, contributing to an approximate loss of 300 million British pounds in operating profit for the company.
- Conscious of the technological vulnerabilities exposed by the cyberattack, Marks & Spencer plans to expedite its technology enhancement, aiming to address future cyber risks and bolster its position in the UK grocery market.
