M&S cyber crisis wipes almost £700mn off retailer’s valuation

Open the Editor’s Marking Free

Rulla Khalaf, the FT editor, chooses its preferred stories in this week’s news.

Cybereart Attacks Cyber ​​attacks the cost of almost 700 meters of pounds, as FTSE 100 retail battles for restoring its operations in almost a week.

M & S He told some customers on Monday that he didn’t know how long it would take to restart online orders when the incident had to stop accepting orders of clothing and households in the last week.

At the same time, the M & S main online distribution center of Leicestershire was told that they were left at home because there were fewer orders. The online sale of clothes and households last year amounted to 1.27 billion pounds, an average of 3.5 million each day.

Monday morning M & S decreased by more than 2%, extending their decline by 7% last Tuesday, when its IT systems were disrupted for the first time. At that time, M & S market value fell by 678 million pounds.

The retailer is fighting for wireless payments and stopped compression and collection orders in stores. Some shops no longer accept the product’s return.

Chaos threatens to disturb the turn of the chief executive Stewart’s car. Last year, the retailer, who reported the adjusted prepaid profit of the pounds of 716.4 million pounds last year, is expected to announce its full results on May 21.

Cyber ​​security Experts say that the episode of the M & S is the peculiarities of rescue program attack, through which cybercriminals steal data or close its IT systems for cash.

Andrew’s father, Wallord Park Morris, who has a law on cyberies, says: “You can’t rule out that this is something else but it seems to be cyber. He added that M & S will try to confirm why they attacked and “What are the bad actors looking for?” Is it a ransom? “

M & S is one of several retailers who are late enough. The sale of WM Morrisons supermarkets in the supermarket network failed last year with cyber attacks, both Currys and JD athletes suffered attacks by customers.

Last week, M & S told customers that “there is no need to take any action,” suggesting that their data were safe. The company refused to provide an update on the situation on Monday.

Investment analyst Kate Kalert said that while M & S customers will feel “very short-term disappointment”, cyber attack will probably not harm the company’s brand in the long run.

However, CalverT added, competitors at the same time Share M & S problems. “If you’re going to go on vacation and you don’t get [products] From M & S you will buy them somewhere else, “he said.

M & S reported to himself in the Office of the Information Council and works with the National Center for Cyber ​​State Security to respond to the violation. All organizations are obliged to report violations to ICO within 72 hours after learning about the incident.