Co-op Suffers £206m Revenue Loss Due to Cyber-Attack in April
The Co-op has revealed that a cyber-attack in April resulted in a staggering £206 million loss in revenue, exacerbating an already challenging first half of the year with a £75 million underlying pre-tax loss. According to the retailer's latest financial report, the attack compromised customer data and disrupted digital payments, leading to widespread shortages of goods in shops.
The Co-op chair Debbie White described the "malicious" attack as causing "significant challenges" in the first half of 2025. The company's IT networks were infiltrated by hackers in April, resulting in payment problems and increased staffing costs. The attack also contributed to regulatory burdens, further impacting the retailer's profits.
The Co-op reported a £75 million underlying pre-tax loss in the six months to July 5, compared to a £3 million profit in the same period a year earlier. Analysts warn that the full cost of the cyber-attack may be even higher, potentially impacting business in the second half of 2025.
According to the Co-op's financial report, the company's underlying pre-tax loss was largely due to increased staffing costs and regulatory burdens. The retailer also faced challenges in its food and insurance businesses, which contributed to the overall loss.
The Co-op has been working to recover from the cyber-attack, but experts warn that the impact may be felt for some time. "The full cost of the cyber-attack is likely to be higher than initially reported," said a retail analyst. "It's not just about the immediate financial losses, but also the long-term damage to customer trust and loyalty."
In response to the attack, the Co-op has implemented additional security measures to protect its customers' data and prevent similar incidents in the future. The company is also working with law enforcement agencies to investigate the cyber-attack and bring those responsible to justice.
As the Co-op navigates its recovery, it remains to be seen how the cyber-attack will impact the retailer's business in the second half of 2025. However, one thing is clear: the incident has had a significant financial and reputational cost for the company.
Attribution:
The Co-op's financial report was released on July 5.
According to the BBC Business article (Source 1).
As reported by the BBC Business article (Source 2).
This story was compiled from reports by BBC Business and BBC Business.
