Marks And Spencer Expands Despite Cyber Attack

Marks & Spencer (M&S) is pushing forward with an ambitious expansion plan as the retailer rebounds from a disruptive month-long cyberattack that impacted operations. The company’s strategy includes converting 12 former Homebase locations into some of its largest food stores, with 550 new jobs expected to be created. This move, seen as a pivotal step in M&S’s transformation journey, reflects the leadership’s focus on growth despite recent challenges.

Chief Executive Stuart Machin described investing in new and refurbished stores as a key priority for the business. The initiative will see eight of these large-format food stores open by July 2026, contingent on planning permission, with the first locations in Abingdon, Oxfordshire, and Cannock, Staffordshire, set to launch this year. Other targeted sites include notable towns such as Farnham, Godalming, and Northampton. These sites will feature improved car parking alongside the introduction of a coffee bakery concept, tapping into consumer demand for artisan goods like sourdough bread and positioning M&S as a rival to popular brands such as Gail’s Bakery.

The Homebase stores being repurposed were part of the retailer’s fallout following its administration in late 2024. Hilco originally acquired the struggling DIY chain for £1 in 2018 before its eventual collapse. While the majority of locations were acquired by CDS, which owns the Range, 49 stores faced uncertainty—opening opportunities for M&S to secure prime locations for its retail expansion.

Despite the cyberattack causing significant disruption, which included empty shelves, suspended online orders, and a £300 million impact on profits, M&S leadership remains optimistic. Redwheel, the retailer’s fourth-largest shareholder, praised the management team’s handling of the crisis, with fund manager Ian Lance stating the pair of Archie Norman, Chair, and Stuart Machin have done “an absolutely fantastic job.” Lance highlighted their decision to prioritise system security by refusing to reopen until operations were 100% secure, even at the expense of short-term costs.

The expansion arrives at a time of heightened speculation about M&S’s market valuation. M&S shares—having recovered from previous lows in 2022—are now being viewed as undervalued, with potential earnings per share exceeding 40p. Analysts believe the company’s strong performance positions it as an unlikely but expensive target for opportunistic takeover bids.

Investors and stakeholders have also gained insights into the breach itself, with reports suggesting the hackers bypassed sophisticated protective measures through human error at a third-party helpdesk. Tata Consultancy Services, a service partner for M&S, is currently investigating the breach. Nevertheless, M&S’s strategic focus on revitalising its retail space signals a determination to recover and thrive in a highly competitive market.

Meanwhile, competitors such as Patisserie Valerie are experiencing indirect benefits from the disruption. Online cake sales for the bakery chain surged by 60% in the second quarter, particularly in wedding cake orders. M&S confirmed that operational issues could persist until mid-2025, meaning alternative retailers may temporarily continue to profit.

The expansion plan, bolstered by the expected launch of new store formats, marks a turning point for M&S. By overcoming setbacks and doubling down on its core strengths, the retailer demonstrates resilience and an unwavering commitment to its customers and transformation strategy.