UK retail giant Marks & Spencer (M&S) has warned that the recent ransomware attack could cost the company as much as £300 million (approximately $400 million), with operational disruptions expected to last into July.
The attack, claimed by the DragonForce ransomware gang, has affected food sales, created logistical challenges, and forced a temporary shutdown of M&S’s online retail operations. In a filing with the London Stock Exchange, M&S said the financial impact will mostly affect its 2025 and 2026 operating profit. However, the company is working to mitigate losses through insurance, cost management, and other trading measures. M&S’s 500-store network and over 60,000 employees have been dealing with manual workarounds to keep critical processes running.
The hackers reportedly accessed sensitive customer data, including contact details, order history, and partial payment information. M&S disclosed that the breach stemmed from a social engineering attack on a third-party supplier. Sources told Reuters that the contractor in question was Tata Consultancy Services, though neither company has confirmed this.
This incident highlights just how far-reaching the consequences of cyberattacks can be — not only disrupting daily operations but also causing significant financial and reputational damage. As cyber threats continue to evolve in complexity and scale, it’s crucial for businesses to stay vigilant and invest in robust security measures to protect their systems, employees, and customers from potential breaches.
CEO: “We’ll Come Back Stronger”
In an interview with the Daily Mail, M&S CEO Stuart Machin called the breach a “setback” but emphasized that the company was prepared for such an incident. He credited prior cybersecurity simulations and a strengthened IT team for helping contain the damage. While declining to comment on the attackers or any potential ransom, Machin stressed that customer support has been strong and that the incident has accelerated the company’s digital transformation plans.
Despite facing public scrutiny and a £1 billion drop in market value, Machin remains optimistic: “We’ve been around for 140 years and we’ll survive this too.”
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