Home Industry M&S online disruption a 'bruise' to reputation, analyst says

M&S online disruption a 'bruise' to reputation, analyst says

by Chloe

Marks & Spencer has suffered a "bruise" to its reputation after it was forced to stop taking online orders following a cyber attack, an analyst has said.

The retail giant has paused orders on its website and apps since Friday as it attempts to restore operations.

But analysts say M&S stands to lose out if the problem is not resolved quickly, with shoppers likely to turn to rival brands when buying summer clothes.

Kate Hardcastle, consumer specialist at Insight with Passion, said the incident was "a bruise to M&S's trusted brand image".

She said: "Customers expect a retailer like M&S to keep their data safe and services running, so an incident like this can shake confidence."

However, she added that because M&S had responded quickly and been open with its communication the long-term damage should limited.

"It's a setback, but with the right actions it can be just a bruise rather than a lasting scar."

About a third of the retailer's clothing and household goods' sales in the UK come from its online operations.

Natalie Berg, retail analyst at NBK Retail, said such incidents "erodes consumer trust in the brand".

"I think shoppers are generally forgiving when these incidents occur, but they expect it to be resolved quickly."

Customers began reporting problems last weekend – with people struggling to use contactless payments, click & collect, and gift cards – and on Tuesday the retailer confirmed it was facing a "cyber incident".

Then on Friday M&S said it was pausing taking orders through its UK & Ireland websites and apps and some international websites.

It apologised for the inconvenience and said it would refund orders placed by customers on Friday.

M&S says contactless payments are now working and gift cards can be used.

Online grocer Ocado, which sells M&S food on its platform, is unaffected by the problems as it runs on an entirely separate system.

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