M&S cyberattack halts online sales, wipes $793Mn in market value
LONDON, UNITED KINGDOM — Marks & Spencer faces its biggest operational crisis in years after a cyberattack by the hacking group Scattered Spider crippled its digital systems.
The breach has caused widespread product shortages, halted online sales, and wiped £700 million (US$793 million) from the retailer’s market value—testing both its technical resilience and customer trust.
Omnichannel breakdown with real-world consequences
The cyberattack has disrupted M&S‘s entire ecosystem, from empty food shelves at flagship stores like Marble Arch to paralyzed online services including Click & Collect and the Sparks loyalty program.
While some functionality has been restored, food supply chains remain compromised, with normal operations not expected before week’s end— a critical setback as summer entertaining demand peaks.
The financial impact is severe: the retailer loses €3.8 million (US$4.3 million) daily from online sales, while its stock price plunged by 7%.
Distribution centers like Castle Donington sent 200 agent workers home, and partner Ocado faces grocery delivery delays. Cybersecurity firms CrowdStrike and Microsoft are investigating the breach of domain-level controls, suggesting potential long-term vulnerabilities.
Communication failures compound technical crisis
While store staff earn praise for handling shortages with handwritten signs, corporate communication gaps have drawn fire.
Former executive Nayna McIntosh warns silence is “the worst” response, as frustrated customers flood social media over missing loyalty perks and unclear timelines—exacerbating the reputational damage.
“The worst thing a brand can do during a crisis is stay silent. Customers don’t expect perfection – but they do expect clarity,” McIntosh said.
Customer experience (CX) experts note recovery hinges on emotional intelligence as much as IT fixes. “Customers will remember how they were treated during the disruption far more than the disruption itself,” said a CX strategist.
With nearly $800 million in lost market value, M&S must leverage its brand equity through transparent, humanized communication to rebuild trust.
