Profits Plunge 99%: Cyberattack on Marks & Spencer Nearly Cripples British Retail
Even a £100 million insurance payout couldn't cover the massive losses.
The British retail chain Marks & Spencer has summarized its results for the first half of 2025, a period marked by a major cyberattack that significantly impacted its financial performance. Over the six months, the company's profit fell to £3.4 million ($4.5 million), compared to over £391 million ($516 million) a year earlier. According to M&S CEO Stuart Machin, the events of the spring were an exceptional challenge for the company, but the business is gradually returning to stable operations.
The attack occurred in April and disrupted the online store's functionality for several months. After detecting the incident, M&S shut down internal systems, including logistics platforms and online order processing. Home delivery services were resumed in June, while the click-and-collect service was only restored in August. As stated in the company's recent report, almost all internal processes have now been recovered.
Losses from the incident were previously estimated at £300 million ($396 million). However, a £100 million ($132 million) insurance payout helped to partially mitigate the impact. Despite the support from the insurance company, the blow to its reputation and customer activity was severe.
The incident was part of a series of coordinated attacks targeting major UK retail chains. According to law enforcement, the Scattered Spider group is behind the attacks on M&S, as well as the Co-op and Harrods stores. In July, as part of the investigation, four individuals, including a minor, were detained.
M&S's financial troubles have benefited its competitors. The Next brand, in particular, recorded a 7.6 percent increase in sales. The company's report emphasizes that this was due to reduced activity from other market players.
