Source: GlobalData
Cyberattack could cause M&S’ apparel market share to stall in 2025, says GlobalData
Posted in Retail
Following Marks & Spencer’s update on the financial implications of its cyberattack:
Pippa Stephens, Senior Apparel Analyst at GlobalData, offers her view:
“Marks & Spencer was one of the biggest winners in the UK apparel market in 2024, with its market share rising 0.4ppts to 5.2%*, the highest it has been since 2017. However, this upward trajectory is now under threat following its cyberattack. It has paused online orders for nearly four weeks already, with online disruption expected to continue until at least July. GlobalData estimates that prior to the attack, M&S was set to take around £250m in online apparel sales between May and July, showing how much the retailer could potentially lose, though some of this spend will likely shift to stores. Alongside reduced availability in its food division, and anticipated increased stock management costs, M&S also expects the attack to have a £300m impact on group operating profit in its FY2025/26.
“Even once M&S has ensured the security of its systems, and starts taking online orders again, the impact of this event will be long-lasting. While the retailer has taken swift action, and been extremely transparent with consumers, the stealing of customer data during the cyberattack could undermine its hard-won gains in brand reputation and customer loyalty. Moreover, it will be left with excess seasonal stock due to the halt of its online operations, likely impacting its margins as it will be forced to implement more discounts. Therefore, this incident serves as a stark reminder of the vulnerabilities retailers face in an increasingly digital landscape, where a single breach can have far-reaching consequences.
“With the retailers’ recent impressive growth down to its transformation into a more fashion-forward retailer, appealing to younger demographics through more contemporary own-brand designs, as well as partnerships with popular brands such as Nobody’s Child and Adidas, it must now double down on this more than ever to regain appeal. It should also continue to showcase its commitment to quality as consumers prioritise the value for money of their purchases, to deter them from shifting spend elsewhere, and keep investing in its online platform once it is back up and running, to capitalise on the channel’s ongoing outperformance.”
*Data is from GlobalData’s Retail Intelligence Center. Market shares are calculated from UK apparel sales for the calendar year, including sales tax. Shares are as of May 2025.