M&S Faces Challenges in Recovering from Cyber-Attack This Summer

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Shoppers report low availability as retailer prioritises clothing in partial resumption of online services

The management team at Marks & Spencer is eagerly anticipating sunny weather. As temperatures in the UK rise, the retailer is hoping that it will encourage customers to shop online for summer clothing items like shorts, swimwear, and sandals.

After experiencing six weeks of disruptions due to a cyber-attack, M&S has resumed taking internet orders. A limited selection of its fashion products is now available for standard home delivery in England, Scotland, and Wales.

Despite the partial resumption of online services, the retailer is still facing challenges with its website. Shoppers in Northern Ireland are unable to place orders yet, and click-and-collect services will only be available in the coming weeks.

Retail analysts understand M&S's decision to prioritize getting fashion back online before beauty and homeware, considering the limited time available to sell seasonal stock. The retailer is hoping for a hot summer to boost sales of summer clothes.

There was a noticeable demand for M&S clothing among loyal customers, but many were disappointed to find out that certain items were out of stock or that they would have to wait up to 10 days for delivery. M&S estimates a £300m hit to profits this year due to the cyber-attack.

With the supply chain disrupted, availability issues persist in M&S stores. Customers like Clare are struggling to find their sizes in-store, highlighting the challenges the retailer is facing in recovering from the cyber-attack.

M&S's stores play a crucial role in its online operations, with two-thirds of online orders involving store visits for pickup or returns. Clive Black, head of consumer research at M&S's broker Shore Capital, emphasizes the importance of getting all services back to normal for the retailer.

As M&S resumes online operations, analysts suggest that the retailer may need to discount excess stock eventually to drive sales. The cyber-attack came at a time when M&S was gaining market share and seeing positive results from its turnaround plan.

Rebuilding trust with customers and regaining lost earnings will be a challenge for M&S, but the retailer is making efforts to ensure a smooth transition back to normal operations.



Source: The Guardian
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