What: Major UK retailer M&S suspends online operations and click-and-collect services amid cybersecurity crisis impacting GBP 3.5mn daily digital sales.

Why it is important: The timing and scale of the disruption highlights the critical importance of cyber resilience in modern retail, especially given the sector's increasing reliance on integrated digital systems.

Marks & Spencer is grappling with a significant cyber incident that has wiped nearly £700 million off its market value and forced the suspension of online clothing and homeware orders. The crisis, which began last week, has severely disrupted operations, affecting contactless payments and click-and-collect services across its network. Approximately 200 agency staff at M&S's main Leicestershire distribution centre have been told to stay home due to reduced order volumes. The incident threatens to impact the retailer's turnaround progress under CEO Stuart Machin, with online sales of clothing and homeware, typically worth £3.5 million daily, being particularly affected. The company's share price has dropped 7% since the initial disclosure of IT systems disruption, reflecting investor concerns about the breach's impact on operations and customer confidence.

IADS Notes: Recent data from April 2025 reveals that ransomware attacks account for 30% of retail security incidents, with average losses reaching £1.4 million per attack. This M&S incident follows a pattern of significant disruptions in the sector, including the March 2025 Crowdstrike incident that caused £5.4 billion in losses across Fortune 500 companies. The retail sector's vulnerability was further highlighted in December 2024 when a Blue Yonder ransomware attack affected over 3,000 retailers worldwide, demonstrating the cascading impact of cyber threats on integrated retail operations. The incident's timing is particularly significant given recent findings that 86% of retailers use third-party tools, yet only 13% fully understand what data these systems collect.

M&S cyber crisis wipes almost GBP 700mn off retailer’s valuation