The Co-op has reported that a cyber-attack it experienced in April 2023 resulted in a minimum of £206 million in lost revenues. This incident compromised the company’s IT networks, leading to payment issues, significant goods shortages in stores, and the loss of customer data.
Co-op chair Debbie White noted that the “malicious” attack presented “significant challenges” during the first half of the fiscal year 2025. She emphasized the need for the organization to rebuild stronger to face future challenges and opportunities.
In financial terms, the retailer reported a £75 million underlying pre-tax loss for the six months ending 5 July, a stark contrast to the £3 million profit recorded in the same period the previous year. The organization’s profitability was adversely affected not only by the cyber-attack but also by increased staffing costs and regulatory pressures. It anticipates that the full financial impact of the attack could exceed initial estimates, with ongoing effects expected in the latter half of the year.
The disruption caused by the cyber-attack resulted in empty shelves and difficulties with digital payment systems, particularly impacting rural areas where the Co-op serves as the sole large supermarket. Initially, the Co-op downplayed the severity of the breach but later acknowledged that data from all 6.5 million of its member customers had been compromised. Additionally, funeral homes operated by the Co-op had to revert to paper-based systems due to the attack.
Co-op chief executive Shirine Khoury-Haq expressed pride in the company’s response to the situation, acknowledging both the strengths revealed and the areas requiring improvement, especially within the Food business. The cyber-attack took place amidst a challenging period for the organization, characterized by rising operational costs and declining consumer confidence linked to increased living expenses. Last year, while reporting improved profits, the Co-op had already warned of potential costs exceeding £200 million in 2025, attributed to various pressures including £80 million from shoplifting.
Source: https://www.bbc.com/news/articles/ckgq9dke4e5o?at_medium=RSS&at_campaign=rss