Marks & Spencer’s Cyber Attack Boosts Competitors
- Marks & Spencer’s online outage led to a 20% drop in clothing sales
- Next, Zara, and H&M gained market share during the disruption
- Zara’s sales growth increased from 16.1% to 27.8%
- H&M’s sales growth rose from 8.9% to 18.1%
- Primark saw little benefit with growth slowing slightly to 2.7%
A recent cyber-attack on Marks & Spencer forced the retailer to suspend online orders, causing a 20% drop in clothing and home sales year-on-year. Rivals Next, Zara, and H&M saw growth in their market share during this period. Kantar data shows M&S’s sales decline compared to an 11.5% surge before the incident. While Zara and H&M’s smaller UK market share makes precise figures difficult to verify, both experienced strong upticks. Primark, only available online via click and collect, saw little benefit with growth slowing slightly to 2.7%. M&S maintains its position as the UK’s biggest clothing retailer by value.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the impact of Marks & Spencer’s online outage on its clothing sales and the growth of its competitors. It cites data from Kantar and includes quotes from an analyst and M&S’s statement. However, it could provide more specific figures for Zara and H&M’s sales increase.
Noise Level: 3
Noise Justification: The article provides relevant information about the impact of a cyber-attack on Marks & Spencer’s online sales and how it affected their market share compared to competitors. It also includes data from Kantar and analysis from Jefferies analyst James Grzinic. However, it could have provided more in-depth insights into the long-term consequences or solutions for similar situations in the future.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the impact of Marks & Spencer’s online outage on its clothing sales and the subsequent gain in market share for its rivals such as Next, Zara, and H&M. This has financial relevance as it affects the performance of these companies and their sales figures.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: h. Technological Disruption
Impact Rating Of The Extreme Event: Moderate
Extreme Rating Justification: A major cyber-attack caused a temporary suspension of online orders for Marks & Spencer, affecting their clothing sales and allowing rivals like Next, Zara, and H&M to gain market share.
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