Marks & Spencer Faces Challenges After Cyber-Attack Disruption

Marks & Spencer (M&S), a leading UK retailer, is grappling with significant operational challenges following a cyber-attack that has severely impacted its online services. The attack, which commenced over the Easter weekend, has resulted in a partial resumption of online ordering, leading to widespread customer dissatisfaction due to low stock availability and delayed deliveries.

On June 13, 2025, M&S officially announced the restart of its online ordering system, focusing primarily on clothing items. However, this resumption does not signal a complete recovery, as shoppers in Northern Ireland are still unable to place orders, and services such as click-and-collect and next-day delivery are expected to resume in the coming weeks. Retail analysts report that M&S has prioritized clothing sales due to the limited window for seasonal merchandise, with Catherine Shuttleworth, Chief Executive of Savvy Marketing, stating, They will be praying for a hot summer so people keep buying summer clothes.

According to estimates from data firm GlobalData, M&S may have lost up to £130 million in online clothing sales during the six weeks its website was down, contributing to an anticipated £300 million hit to profits for the fiscal year. The disruption has led to a stark decline in customer satisfaction, with numerous shoppers expressing frustration over low stock levels. One customer, Kirsten Jones, noted, I attempted to order some jeans last night, but by the time I finished adding things to my basket, my size was gone.

The cyber-attack has left M&S's supply chain in disarray, further complicating its ability to meet customer demand. Clare, a customer at an M&S store in Stratford, London, remarked, I’ve not been able to find my size in store for a few weeks, and even now I’m struggling. According to Clive Black, head of consumer research at Shore Capital, M&S's physical stores play a critical role in its online operations, handling two-thirds of online orders through click-and-collect services.

The impact of the cyber-attack extends beyond immediate sales losses, as M&S has struggled to maintain customer trust. Chief Executive Stuart Machin had encouraged customers to visit physical stores during the downtime; however, the extent to which sales shifted to brick-and-mortar locations remains unclear. Analysts speculate that M&S may need to implement discount strategies to move excess seasonal stock as the summer window draws to a close.

This situation occurs against the backdrop of a challenging retail environment, where consumers are reportedly tightening their spending habits amid economic uncertainties. Pippa Stephens, a senior apparel analyst at GlobalData, commented, They will probably try and stay at full price initially, at least, to get that money back.

Historically, M&S has faced various operational challenges, but the recent cyber-attack marks a significant setback, particularly as the company had begun to see improvements in market share and stock prices prior to the incident. While M&S's clothing lines have garnered praise from fashion commentators, the retailer faces an uphill battle to restore its reputation and sales performance in the coming months. As the company navigates these challenges, the focus will shift toward ensuring a robust recovery strategy that prioritizes both customer satisfaction and operational efficiency.

In summary, M&S's recovery from the cyber-attack will be crucial not only for its financial health but also for reinstating consumer confidence and re-establishing its position in the competitive retail landscape.