Tesco supports M&S and Co-op during crippling cyberattack

In a remarkable display of unity within the highly competitive retail industry, Tesco stepped in to provide supplies to Marks & Spencer (M&S) and several Co-op branches after the two chains were hit by a devastating cyberattack. The assistance, revealed by Tesco CEO Ken Murphy, highlights the extent of disruption caused by the attack and the unusual collaboration between major supermarket rivals.

Booker, the wholesale arm of Tesco, played a pivotal role in offering support. It supplied essential branded items such as Coca-Cola and Marmite to both M&S and independent Co-op societies whose supply chains were paralysed by the crisis. While the main Co-op Group did not seek help, its independent branches turned to Booker for temporary solutions. Murphy confirmed that Tesco swiftly agreed to the requests and provided the necessary support.

The cyberattack caused severe operational disruptions, with M&S being the worst affected. Its online business was rendered inactive for nearly two months. The company only recently resumed operations, relaunching its website and fulfilling a backlog of online orders. Many customers, who had retained items in their digital shopping baskets, rushed to complete their purchases following the relaunch.

M&S has disclosed that the attack is projected to impact its profits by at least £300 million this year. Despite this setback, the company expressed determination in restoring customer confidence and regaining online momentum. The collaborative gesture from Tesco underscores a significant moment of solidarity between competing grocery businesses.

While Tesco benefited from an uptick in like-for-like sales in the last three months, Murphy clarified that these gains were unrelated to the cyberattack on competitors. He stressed the importance of vigilance against cybersecurity threats, describing it as a persistent priority for Tesco. “Cybersecurity is at the top of my inbox on a daily basis,” Murphy stated. He added that Tesco has been investing heavily in advanced cyber capabilities to stay ahead of increasingly sophisticated threats.

Murphy emphasised the importance of monitoring industry occurrences to strengthen defences, noting that learning from others’ experiences is essential. The rare collaboration between Tesco, M&S, and Co-op serves as a testament to the critical need for adaptability and mutual support within the retail sector during crises.