Business analysts have raised concerns about the impact of a recent cyber attack on Marks & Spencer, which has led to the suspension of online orders. The retail giant has been forced to halt operations on its website and apps in an effort to address the issue. As a result, there are worries that M&S may lose customers to rival brands who are looking to purchase summer clothing.
Consumer specialist Kate Hardcastle described the incident as a blow to M&S’s trusted brand image, pointing out that customers expect their data to be secure and services to be functional. However, she also noted that the retailer’s quick response and transparency in communication could help mitigate any long-term damage. About one-third of M&S’s sales from clothing and household goods in the UK come from its online platform.
Meanwhile, retail analyst Natalie Berg highlighted the negative impact of such incidents on consumer trust in the brand. She emphasized the importance of resolving the issue promptly to maintain shopper forgiveness. Customers encountered difficulties last weekend, leading to problems with contactless payments, click & collect, and gift cards, prompting M&S to confirm a cyber incident on Tuesday and halt online orders on Friday. However, online grocer Ocado, which sells M&S food, has not been affected as it operates on a separate system.
With warmer weather approaching and consumers gearing up for summer, industry experts warn that M&S could miss out on crucial sales during this time. Catherine Shuttleworth of Savvy Marketing noted the immediate impact of online disruptions on sales, stating that competitors may benefit from the situation. Despite recent improvements in sales and profits, the cyber attack represents a significant setback for M&S, with analysts labeling it as an operational catastrophe. An assessment by the Information Commissioner’s Office is underway to address the incident, making M&S the latest major brand to face significant disruption to its online services
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