Marks and Spencer (M&S) is grappling with significant challenges following a cyber attack that has resulted in a reported loss of sales for six weeks, equating to a potential £300 million hit to profits this year. This incident has raised concerns among shoppers experiencing low stock levels and limited availability of merchandise.
Retail analyst and CEO of Savvy Marketing, Catherine Shuttleworth, emphasized the urgency for M&S to revitalize its operations. She noted, “They will be praying for a hot summer so people keep buying summer clothes,” which is crucial for their recovery. However, with stock mismanagement and items not available in the right sizes online, the outlook for a quick recovery appears grim.
Frustrations among shoppers have surfaced as many struggle to find their desired sizes, with one customer, Kirsten Jones, expressing her discontent over missed opportunities to purchase jeans due to stock shortages. Another shopper echoed these grievances, revealing difficulties in locating sizes in-store and online.
Analysts suggest that M&S needs to reinstate its click-and-collect service and get its high-tech distribution center in Castle Donington operational. Pippa Stephens, a senior apparel analyst at GlobalData, predicted that it could take until August for M&S to restore a normal clothing offer both in stores and online. She pointed out that while the company may initially keep prices high to recoup losses, eventual discounts might become necessary to clear excess stock.
As the company looks ahead, Shuttleworth believes M&S’s priority should be to stabilize operations in time for the back-to-school shopping season, signaling hope for a gradual return to normalcy. The summer remains pivotal for M&S, as the retail giant strives to overcome the repercussions of the cyber incident and fulfill customer demands.