What: M&S clothing sales drop 20% following cyber attack disruption, while competitors see growth amid broader market recovery.

Why it is important: This development demonstrates how cyber disruptions can fundamentally alter market dynamics and competitive positions in modern retail.

Marks & Spencer has experienced a significant 20% year-on-year decline in clothing sales during the four weeks to May 25, contrasting sharply with the broader industry's 4% growth. This downturn follows the suspension of online operations on April 25, after a cyber attack was detected on April 22. The impact is particularly notable given that e-commerce typically accounts for a third of M&S's fashion and homeware sales. While competitors like Next saw sales growth increase from 1.6% to 4.8%, and other retailers like Zara and H&M also reported gains, Primark's growth narrowed despite its Click & Collect rollout. M&S has begun restoring services, with sportswear brands returning to online sales and delivery times reducing to five days for standard shipping across Britain. The retailer has also resumed its gifting category, including flowers and hampers.

IADS Notes: The impact of M&S's cyber attack continues to reshape retail operations and market dynamics. According to Financial Times' April 2025 coverage , the incident initially wiped nearly £700 million off M&S's market value and disrupted £3.5 million in daily digital sales. Retail Week's May 2025 analysis revealed how customer confidence was affected, with recommendation rates dropping from 87% to 73%, though underlying trust remained relatively stable at 82%. Drapers' June 2025 report showed how the retailer's phased recovery approach prioritised security over immediate business restoration, with delivery times gradually reducing from ten to five days. Financial Times' May 2025 coverage  highlighted the broader financial implications, with the company expecting a £300 million reduction in operating profit for 2025/26. The latest sales data showing a 20% year-on-year decline in clothing sales, compared to 4% industry growth, demonstrates how cyber disruptions can fundamentally alter market dynamics and competitive positions.

M&S cyber-attack boosted sales at Next, Zara and H&M