Marks and Spencer Cyberattack Provides Strategic Reset Opportunity Says CEO Stuart Machin

The recent cyberattack on Marks and Spencer has created an unexpected opportunity for strategic realignment, according to Chief Executive Stuart Machin. The retail giant’s leadership is viewing the disruption as a catalyst for comprehensive operational improvements, particularly in their clothing division.

The Easter Saturday breach, attributed to the hacking group Scattered Spider, resulted in an estimated £25 million weekly loss in online clothing orders. The company projects a substantial £300 million impact on annual profits, with their Click and Collect service remaining offline and full website restoration not expected until August.

Despite these challenges, M&S entered 2025 with considerable momentum, having successfully shed its dated fashion image and securing a return to the FTSE 100 after a four-year absence. The retailer’s womenswear division has shown particular strength, with market share increasing from 4.9% to 5.2% since 2023.

Chairman Archie Norman acknowledged the timing of the setback, stating at the annual meeting, “In business life, events have a way, just as you think you’re doing rather well, of tripping you up and putting you on your backside again.” The company’s response includes compensation for affected customers and plans to leverage their Sparks loyalty programme for customer retention.

The menswear division, while showing improvement with a 10.4% market share, still presents growth opportunities. Machin, who describes himself as “the biggest customer, but also the biggest critic,” emphasises the need for streamlined options and enhanced style clarity.

Looking ahead, M&S plans to prioritise service enhancement and data analytics implementation. The retailer’s recovery strategy focuses on rebuilding customer trust and strengthening operational resilience, with particular emphasis on their fashion business segment.