M&S food sales growth slowed as cyber attack forced online shutdown
Marks & Spencer's food arm saw sales growth slow as the group's online operations were also shouldering the impact of a crippling cyber attack.
Closely-watched NielsenIQ survey data published on Wednesday sheds fresh light on the impact of the cyber attack that has hammered M&S.
Food sales at the grocer slowed to 9.1 per cent in the three months to 14 Jujne, from 10.8 per cent in last month's report and 14.7 per cent in the month prior to that, researcher NielsenIQ said.
While M&S's market share ticked up 10 basis points on the year to 3.7 per cent, it was down from the 3.8 per cent reading in last month's report, the research found.
The cyber attack took place over the Easter weekend and initially hit click-and-collect and contactless payments.
As part of its management of the cyber attack, M&S halted online clothing orders and took other systems offline. The availability of some food lines was also reduced.
The cyber attack affected deliveries and led to gaps on shelves and forced the retailer to pause some offers in certain stores.
Last month, M&S said the cyber attack would cost it around £300million in lost operating profit. It does, however, expect insurance to cover some of the financial impact.
The group started taking online orders for clothing lines again on 10 June after a 46-day suspension following the attack.
In May, the National Crime Agency indicated where their suspicions lie in respect of the M&S cyber attack. It named the notorious cyber-criminal collective Scattered Spider as a key part of its investigation.
The cyber attack was reportedly carried out using DragonForce, which is a platform that gives criminals the tools to carry out ransomware attacks.
According to BBC News, the hackers sent an abuse-filled email directly to M&S's chief executive, Stuart Machin, gloating about what they had done and demanding payment.
In M&S's latest annual report, chairman Archie Norman said the impact of the cyber attack was likely to 'endure for some weeks, or even months.'
But, he added: 'I am confident that in a year's time the cyber incident will prove to have been a bump in the road along the path to growth, even if it does not feel like that today.'
Most of NielsenIQ's data on Wednesday broadly echoed the findings of rival researcher Kantar's report on Tuesday, with robust performances from market leader Tesco, Sainsbury's and Ocado.
However, M&S is not fully included in Kantar's market share data set. Kantar uses a different methodology, which does not include grocery sales from delivery apps like Deliveroo.
Russ Mould, investment director at AJ Bell, said: 'The cyberattack resulted in various systems going offline and that affected supplies coming into its stores.
'The incident was chaotic for the company and its customers but Marks & Spencer is now working hard to regain trust. Its food business has long been the shining star of the group and it is unlikely to be too worried about a short-term blip in the sales history.
'More of a challenge will be winning back customer support for its clothing arm, which had finally found its groove just before the cyberattack knocked the business for six.'
M&S shares were up 0.48 per cent or 1.70p to 357.00p on Wednesday, having risen over 24 per cent in the last year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
17 minutes ago
- The Independent
Taiwan VP says won't be intimidated after Czech officials claim Chinese diplomats planned car crash
Taiwan 's vice president Hsiao Bi Khim says she will not be intimidated by China after Czech military intelligence claimed Chinese diplomats and secret service followed her and planned to intimidate her physically when she visited Prague last year. Ms Hsiao visited the Czech Republic in early 2024. Prague does not have official diplomatic ties with Taiwan but has fostered warm relations with the island, which China views as its own territory. Czech media reported last year that a Chinese diplomat had run a red light when following Ms Hsiao's car. Czech public radio news website said on Thursday that the Chinese had also planned to stage a demonstrative car crash. "I had a great visit to Prague & thank the Czech authorities for their hospitality & ensuring my safety. The CCP's unlawful activities will not intimidate me from voicing Taiwan's interests in the international community," Ms Hsiao said, in a social media post on Saturday, referring to the Chinese Communist Party. The post was linked to a Reuters report about the incident. In another X post, Ms Hsiao thanked global parliamentarians who had expressed solidarity against "violence and coercion'. "Taiwan will not be isolated by intimidation," Ms Hsiao said. Czech military intelligence spokesperson said Chinese diplomats in Prague had taken actions that violated diplomatic rules. 'This consisted of physically following the vice president, gathering information on her schedule and attempts to document her meetings with important representatives of the Czech political and public scene," spokesperson Jan Pejsek told Reuters. 'We even recorded an attempt by the Chinese civil secret service to create conditions to perform a demonstrative kinetic action against a protected person, which however did not go beyond the phase of preparation." A spokesperson for China's foreign ministry denied any wrongdoing by Chinese diplomats and claimed the Czech Republic had interfered in the country's internal affairs by allowing Ms Hsiao's visit to go ahead. The Czech foreign ministry said it had summoned the Chinese envoy over the incident at the time but didn't comment further on Friday. 'This is the CCP's criminality on display for the whole world to see. This isn't diplomacy, it's coercion," the US House of Representatives Foreign Affairs Committee wrote on X. Taiwan protests Taiwan claimed the alleged Chinese actions "seriously threatened the personal safety of Ms Hsiao and her entourage". "The Mainland Affairs Council today protested and strongly condemned the Chinese communist's bad behaviour and demanded that the Chinese side should immediately explain and publicly apologise," it said. A senior Taiwan security official briefed on the matter told Reuters that the incident was an example of "transnational repression" by China that the European Union was currently paying close attention to. "This is a problem that everyone should pay attention to," the official, requesting anonymity, said, adding many government officials around the world were threatened by China upon visits made by Taiwanese officials or politicians to their countries. In Beijing, foreign ministry spokesperson Guo Jiakun maintained that "Chinese diplomats have always abided by the laws and regulations of the countries in which they are stationed'. "China urges the parties concerned not to be provoked and exploited by separatist forces for Taiwan independence, and to not make a fuss over nothing, engage in malicious speculation and interfere with and undermine the relations between the two countries." Ms Hsiao assumed office along with president Lai Ching Te on May 20 last year. Czech relations with China have cooled in recent years. The Czechs accused China in May of being behind a cyberattack on the foreign ministry. Tsai Ing Wen visited Prague last October. China views separately governed Taiwan as its own territory and has ramped up its military and political pressure in recent years. Taiwan says only its people can decide their future and vows to defend its freedom and democracy.
The Sun
19 minutes ago
- The Sun
I spent weeks identifying 7/7 victims – the atrocity still haunts me 20 years on
HERO Scots cops who identified victims of the London 7/7 terror attacks last night revealed they are still haunted by the atrocity 20 years on. Paul Clements, 67, recalled his 'traumatic' five-week deployment in a mortuary holding commuters killed when terrorists detonated suicide bombs on three trains and a bus. 4 4 4 The retired Met Police officer revealed he still struggles to board the Underground due to painful memories of the rush-hour tragedy — when 52 people lost their lives and 784 others were wounded. He had grown used to dealing with the 'ugly side' of life in the force but nothing prepared him for his work helming a team of Disaster Victim Identification officers. Days from the 20th anniversary of the attack on July 7, 2005, dad-of-one Paul, from Stranraer, said: 'I spent five weeks in a mortuary with a team trying to identify victims. 'It was traumatic, of course it was. Each body part or each person is also a crime scene. 'Obviously we had to recover any forensic evidence. We had to look for SIM cards, or bits of circuit board, for evidential purposes, because we were trying to find out what type of detonators were used. 'You're dealing with an ugly side of life — and as a police officer you do deal with the ugly side of life — but this was on a fairly massive scale. 'It took most people by surprise. You do have to be professional.' Three bombs were detonated on board Underground trains within 50 seconds of each other as Londoners headed to work. An hour later a fourth explosive ripped through the top of a No30 double-decker bus. Recalling his struggles later to catch the tube, with the memory of the attacks fresh, Paul said: 'I remember later walking to the tube station. 7/7 survivor Dan Biddle and his rescuer Adrian interview 'I got to the entrance and I just couldn't walk in it. I got a mental flashback of everything I'd just dealt with. 'I thought, no, I cannot go on the tube. And strangely enough, I got a bus, and the bus took me probably three or four times the length of time. 'Although obviously a bus was bombed as well, it didn't have the same mental impact as the tube did. 'For about a year I just refused to go on the tube. Needs must and eventually I faced up to it and jumped on the tube. But even now it just brings back all those memories. 'I'll do it, but I never feel comfortable going on the tube — and that's 20 years later.' Three suicide bombers launched the deadliest terror atrocity on British soil — setting off from Leeds around 4am in a hired Nissan Micra then driving to Luton to meet their fourth accomplice. Scots Victim Tragedy ACCOUNTANT Helen Jones was the only Scot to die in the terror attack. Helen, 28, was killed in the Piccadilly line bombing just weeks after moving into a North London flat with her boyfriend. She grew up in Templand, near Lockerbie, Dumfries-shire, and went to Aberdeen University aged just 16. After leaving school, she also spent time working with prostitutes and drug addicts at Glasgow's city mission and volunteered at homeless hostels. She'd texted her partner just before the bomb was detonated. Three of the men, Mohammad Sidique Khan, 30, Shehzad Tanweer, 22, and Germaine Lindsay, 19, entered the Underground and boarded separate trains. Ringleader Khan got into the second carriage of a westbound Circle line train heading to Paddington and detonated his device near double doors at Edgware Road station. Tanweer boarded an eastbound Circle line train and set off his device at the rear of the second carriage between Liverpool Street and Aldgate at the same time. Meanwhile, Lindsay caused the most devastation when he exploded his bomb on a southbound Piccadilly Line service between King's Cross and Russell Square. An hour later Hasib Hussain, 18, launched a fourth attack on boarding a bus at Tavistock Square. Retired Detective Sergeant Callum Sutherland, 67, from Greenock, led units working with pathologists to identify the deceased in a makeshift mortuary. The crime scene manager and his officers had to search for bits of explosive devices — a job so grim that many opted to stay in a hotel for five weeks rather than return to their families and discuss the devastating details. Callum endured harrowing shifts with fellow officers within the temporary morgue in the gardens of the Honourable Artillery Company. Netflix Doc Details Horror Attack A NEW Netflix documentary will offer inside accounts of the horrific day. Attack on London: Hunting The 7/7 Bombers features exclusive interviews with witnesses, including survivors and police. Former Prime Minister Tony Blair, 72, also contributed to the programme. And relatives of Brazilian Jean Charles de Menezes, 27, pictured, who was shot dead after being wrongly suspected of being a terrorist, also have their say. The documentary will launch on the streaming service on Tuesday. He admitted: 'A girl was meant to be getting married there over the weekend. The police or the government paid for her wedding to be somewhere else so they could use this as a temporary mortuary. 'It's later it affects you. You'll hear police officers say, it doesn't bother me, it's just a job. 'Well, rubbish. It does. Not necessarily at the time, or the next day, or a few days later, but at some point it will.' Family man Callum has also worked with crime author and scriptwriter Lynda La Plante on TV shows Prime Suspect and Trial & Retribution. He added: 'You have the occasional nightmare. I've always felt if it doesn't bother you, then you're not the right person for the job. 'One of the things that was different as well is, generally, in a murder, you don't know who did it, or you don't know the exact cause of death until you have a post-mortem. But with the bombings, you knew how those people had died from the word go. 'It's tiring because you were doing 12-plus hour days, day in, day out, but we had an important job to do.' He and colleague Paul remain proud of how they handled the toughest days of their careers. Paul said: 'It doesn't feel like 20 years. It seems in some instances almost like a couple of years ago. We all felt very proud. I think we're all professional, and it was a multi-team sort of effort because it wasn't just Met officers and we worked exceptionally well.' Callum added: 'You should be thinking about people who've lost their loved ones, giving family comfort and finding out who did it.'
Daily Mail
20 minutes ago
- Daily Mail
Is Keir already lining up his next U-turn? Starmer faces fresh rebellion from Labour MPs over his 'family farm tax'
Sir Keir Starmer has been put on notice of a fresh Labour rebellion over the Government's 'family farm tax'. More than 40 Labour MPs are said to be considering a bid to water down looming changes to agricultural and business inheritance tax relief. It comes after the Prime Minister performed a trio of embarrassing U-turns in recent weeks. Sir Keir has reversed his position on axing the winter fuel payment for millions of pensioners, a national grooming gangs inquiry, and welfare cuts. This has left Labour rebels feeling emboldened that they can force the Government into further policy changes. According to the Telegraph, a group of Labour backbenchers are considering using amendments to legislation to exempt small family farms from a planned tax raid. At last year's Budget, Chancellor Rachel Reeves announced farmers will pay a 20 per cent rate of inheritance tax on land and property they inherit worth more than £1million. The Government has insisted the measures - dubbed the 'family farm tax' and set to be in place from April 2026 - will only affect the wealthiest quarter of landowners. But the National Farmers' Union (NFU) and others say the impact of Ms Reeves' measures will be much more widespread. Critics claim the move could wipe out family-run farms with tight margins, as they will be forced to sell up in order to pay death duties. There have been months of demonstrations by farmers in response to the Chancellor's tax raid, including tractor protests in Wesminster. A 'rural growth group' of Labour MPs is now proposing the raising of the £1million cut-off point at which estates lose their tax reliefs. They have suggested estates receive full tax relief on the value of agricultural properties up to £10million, 50 per cent to £20million, and nil thereafter. Sam Rushworth, Labour MP for Bishop Auckland, who is a member of the group, told the newspaper they would 'consider what amendments to put down'. Mr Rushworth said: 'We are all keen to avoid amendments. I don't want it to get to that point. I am a Labour MP and I broadly support the Government. 'I would like to see them bring forward different recommendations in the Bill.' Ex-Cabinet minister Louise Haigh, who was a leading rebel over the Government's now partially-reversed welfare cuts, has called for Sir Keir to 'reset' his relationship with the British public. 'I think this is a moment and an opportunity to reset the Government's relationship with the British public and to move forward, to adopt a different approach to our economic policy and our political strategy,' she told the BBC in the wake of the PM's climbdown on welfare changes. 'And I think that has been accepted from within government and a lot of people, both in the parliamentary Labour Party, but crucially, the country will really welcome that.' The Government's original welfare package had restricted eligibility for Personal Independence Payment (PIP), which is the main disability payment in England. It also cut the health-related element of Universal Credit. But, after Sir Keir offered concessions to rebel MPs, the changes to PIP will now only be implemented in November 2026 and apply to new claimants only. All existing recipients of the health element of Universal Credit will also have their incomes protected in real terms. A Government spokesman said: 'Our reforms to agricultural and business property relief are vital to fix the public services we all rely on. 'Three quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance tax that most people pay, and payments can be spread over 10 years, interest-free. 'We're investing billions of pounds in sustainable food production and nature's recovery, slashing costs for food producers to export to the EU and have appointed former NFU president Baroness Minette Batters to advise on reforms to boost farmers profits.'
