M&S food sales remain robust amidst a cyber-incident, according to NielsenIQ's assessment.
Marks & Spencer (M&S) food sales climbed 10.8% year-on-year in the 12 weeks ending May 17, despite the repercussions from a recent cyberattack affecting stock availability, according to NielsenIQ data. The British retailer's market share increased by 20 basis points to 3.8% during the period.
The high-street giant, however, experienced a slowdown in growth compared to its previous 14.7% rate as the cyber incident disrupted online clothing orders and temporarily shuttered other systems, leaving food stock scant and leading to increased waste and logistics costs. Last week, M&S disclosed the attack is estimated to deter its group operating profit by approximately £300 million, with ongoing disruptions to online services possibly lasting until July.
NielsenIQ's findings resonate with an earlier report by competitor researcher Kantar. The report noted robust sales growth for discounters Aldi and Lidl, market leader Tesco, second-ranking Sainsbury's, and online supermarket Ocado.
Although M&S is partially absent from Kantar's market share data set, preliminary numbers suggest a temporary dip in market share due to the digital disruption and ensuing inventory constraints during key sales periods, such as Easter. However, the company's department stores exhibit resilience during the recovery phase, a positive sign of their adaptability during periods of instability.
The financial implications of the attack on M&S are enormous, with the projected loss of £300 million in operating profit, underscoring the severity of the incident. The company must now address the cyberattack's impact on its technology infrastructure by making accelerated investments in cybersecurity and technology improvements—a task shared by many other major UK retailers.
The financial ramifications for Marks & Spencer (M&S) due to the cyberattack are significant, with an estimated loss of £300 million in operating profit, highlighting the severity of the incident. Amidst this, the slump in M&S food sales growth and temporary dip in market share can also be attributed to the disruption in business operations, particularly in the technology sector.
