What: Major cyber incident at M&S impacts consumer confidence and operations, forcing suspension of online trading amid broader retail sector security concerns.

Why it is important: This incident reveals the growing vulnerability of major retailers to sophisticated cyber attacks, with M&S joining Harrods and Co-op as recent victims, highlighting an urgent need for enhanced industry-wide security measures.

The cyber attack on Marks & Spencer has significantly impacted consumer confidence, with customer recommendation rates falling from 87% to 73%. Despite this decline, underlying trust remains relatively stable, with 82% of customers indicating they would continue to trust the retailer. The attack has caused substantial operational disruptions, affecting contactless payments and click-and-collect services, while forcing the suspension of online trading through the company's website and app. Some food supply chains to stores have also been affected. CEO Stuart Machin has addressed customers directly, apologising for service disruptions and emphasising the company's ongoing efforts to resolve the situation. While YouGov data suggests stable overall brand perception, with 66% maintaining a positive impression, the incident has highlighted the delicate balance between maintaining customer trust and managing cyber security challenges. The attack comes amid similar incidents affecting other major retailers, including the Co-op and Harrods, suggesting a broader pattern of cyber security challenges in the retail sector.

IADS Notes: The recent cyber attack on Marks & Spencer reflects an alarming trend in retail cybersecurity threats. In April 2025, M&S became a target of the Scattered Spider hacking group, resulting in a £700 million market value loss and disrupting £3.5 million in daily digital sales. This incident is part of a broader pattern, as demonstrated by March 2025's unprecedented £5.4 billion industry-wide loss from a single security update failure. The impact on consumer trust, with M&S's recommendation rates dropping from 87% to 73%, mirrors industry research from April 2025 showing that ransomware accounts for 30% of retail security incidents, with average losses reaching £1.4 million per attack. The subsequent attacks on Harrods and Co-op in May 2025 further emphasise the retail sector's vulnerability, particularly as 41% of breaches now occur through third-party providers. This series of incidents has prompted a fundamental shift in retail cybersecurity strategy, moving from prevention-focused approaches to emphasising rapid recovery capabilities.

Consumer confidence in Marks & Spencer dented by cyber attack