Cyber attack fails to dent M&S appeal
Robyn Duffy, Consumer Markets Senior Analyst at RSM UK, comments on Marks & Spencer’s FY26 results:
“M&S has delivered a remarkable sales performance, with revenues surging around 25% despite suffering one of the most disruptive cyber attacks ever faced by a UK retailer. Online operations took 15 weeks to become fully operational again, while store stock availability was disrupted for weeks, inevitably weighing on sales. However, the strength of M&S’s underlying strategy - particularly the continued expansion of its food business - enabled the retailer to recover lost ground rapidly once operations normalised. It was an unprecedented event, but what now looks equally unprecedented is the scale of the recovery.
“Food is the jewel in the crown and continues to outperform the wider grocery market as consumers remain willing to selectively trade up for quality and convenience. At the same time, improving style perceptions around M&S’s clothing ranges - particularly within womenswear - suggest the fashion business has the potential to deliver stronger sales momentum this year. The key takeaway is that customer demand for the brand appears materially stronger than it did just a few years ago.
“Looking ahead, the business remains firmly focused on expanding capacity to support future growth, accelerating technology transformation and continuing investment across its store estate. That continued emphasis on long-term operational capability and scalability positions M&S well to move beyond the disruption caused by the cyber attack and refocus on driving sustainable future growth.
“As M&S emerges from the disruption caused by the cyber attack, it now enters a more challenging external environment. Rising energy prices and conflict-driven inflation are likely to place renewed pressure on discretionary spending this year, with Clothing & Home particularly exposed to any weakening in consumer confidence. At the same time, growing political uncertainty risks adding a further drag on household sentiment. The core proposition is clearly working, but the key swing factor for the year ahead will be how consumers respond to another squeeze on real incomes.”