The cyber attack on Marks and Spencer department store is expected to cost around \u00a3136 million directly. This figure is simply the cost of immediate incident response and recovery, as well as support from specialist legal and professional services.<\/p>\n
Combined with lost sales as the retailer’s online systems were down from Easter into the summer, the company’s statutory profit before tax in the first half of the year was all but wiped out. This profit metric fell from \u00a3391.9m last year to \u00a33.4m this year. An increase to \u201cat least the previous year\u2019s level\u201d is expected for the second half of the department store\u2019s fiscal year.<\/p>\n
Around \u00a3100 million will be recovered from insurance for the cyberattack. Using a different profit measure – M&S Group’s adjusted profit before tax – the figure is more than half what it was last year, from \u00a3413m to \u00a3184m.<\/p>\n
Sales were affected as online shopping was not possible from the attack date in April to June. Even in the days after the attack, some shelves were empty. The click and collect function was only restored in August. Ransomware hackers breached M&S systems by tricking employees of a third-party contractor.<\/p>\n
While overall sales volumes increased compared to the 12 months prior to fashion, home and beauty sales fell 16.4%, and international sales fell 11.6%. The attack was just one in a series of attacks on major British companies.<\/p>\n
Competitors like Next have said they benefited from the stop in some of the chain’s sales, but strong grocery sales suggest M&S has managed to retain customers. According to M&S managing director Stuart Machin, the company has seen monthly food volume growth for three years in a row. Other companies such as Co-Op, Jaguar Land Rover, and Harrods have had their operations disrupted by cybercriminals.<\/p>\n","protected":false},"excerpt":{"rendered":"
Cyber Attack on Marks and Spencer The cyber attack on Marks and Spencer department store is expected to cost around \u00a3136 million directly. This figure is simply the cost of immediate incident response and recovery, as well as support from specialist legal and professional services. Financial Impact Combined with lost sales as the retailer’s online<\/p>\n","protected":false},"author":1,"featured_media":26740,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[743,761,5118,17797,5119,5576,12189,5117,11745,13889,4735,10959,5123,17796],"class_list":{"0":"post-26739","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-company","9":"tag-cooperative","10":"tag-cyberattack","11":"tag-cybercrime","12":"tag-cyberwarfare","13":"tag-department-store","14":"tag-harrods","15":"tag-jaguar-land-rover","16":"tag-marks-spencer","17":"tag-online-shopping","18":"tag-playstation-3","19":"tag-ransomware","20":"tag-security-hacker","21":"tag-stuart-machin"},"_links":{"self":[{"href":"https:\/\/nanamedia.org\/en\/wp-json\/wp\/v2\/posts\/26739","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nanamedia.org\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nanamedia.org\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nanamedia.org\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nanamedia.org\/en\/wp-json\/wp\/v2\/comments?post=26739"}],"version-history":[{"count":1,"href":"https:\/\/nanamedia.org\/en\/wp-json\/wp\/v2\/posts\/26739\/revisions"}],"predecessor-version":[{"id":26741,"href":"https:\/\/nanamedia.org\/en\/wp-json\/wp\/v2\/posts\/26739\/revisions\/26741"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nanamedia.org\/en\/wp-json\/wp\/v2\/media\/26740"}],"wp:attachment":[{"href":"https:\/\/nanamedia.org\/en\/wp-json\/wp\/v2\/media?parent=26739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nanamedia.org\/en\/wp-json\/wp\/v2\/categories?post=26739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nanamedia.org\/en\/wp-json\/wp\/v2\/tags?post=26739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}