Marks & Spencer (M&S) has experienced a significant disruption due to a cyber attack, forcing the retail giant to halt online orders via its website and apps since Friday. This incident has led to analysts suggesting a potential “bruise” to M&S's reputation, particularly if the issue is not resolved swiftly. The company has acknowledged the cyber incident and is working to restore operations.

Kate Hardcastle, a consumer specialist at Insight with Passion, noted that customers expect retailers like M&S to ensure data safety and uninterrupted service. The cyber attack could shake consumer confidence. However, she added that M&S's prompt response and transparent communication could mitigate long-term damage, turning it into a manageable “bruise” rather than a “lasting scar.”

Analysts emphasize the critical timing of this disruption, especially with warmer weather encouraging shoppers to refresh their wardrobes. Natalie Berg, a retail analyst at NBK Retail, pointed out that suspending online orders during this period could lead customers to rival brands. Catherine Shuttleworth from Savvy Marketing highlighted the immediate impact of online disruptions, suggesting that competitors will likely benefit from M&S's challenges.

Approximately one-third of M&S's clothing and household goods sales in the UK are generated online. Last year, nearly £1.3 billion of the £3.9 billion in sales from its clothing and home business came from online operations. Increasing online sales has been identified as a “critical objective” for the company. The current situation poses an “operational catastrophe,” according to Natalie Berg, despite M&S's recent improvements in sales and profits and efforts to expand its online presence.

M&S has reported the incident to the Information Commissioner's Office, which is currently assessing the provided information. The company has also engaged with the National Cyber Security Centre (NCSC), and the National Crime Agency is collaborating with the NCSC to support M&S. Contactless payments and gift card usage have been restored. The disruption does not affect Ocado, which operates on a separate system and continues to sell M&S food products online.

M&S joins a list of major brands recently affected by online service disruptions, including Morrisons, which faced Christmas order issues, and Barclays and Lloyds, which experienced banking outages earlier in the year.