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The Independent UK
The Independent UK
Henry Saker-Clark

Marks & Spencer issues online shopping update following ‘damaging’ cyber attack

Marks & Spencer's chief executive is optimistic that the retail giant will have the majority of the impact from its recent "damaging" cyber attack "behind us" by August.

The breach, which halted online orders and compromised customer data, was attributed to "human error" and is expected to cost the company around £300 million.

The high street giant was forced to suspend online operations in April after hackers targeted its systems.

The incident led to the theft of personal customer data, potentially including names, email addresses, postal addresses, and dates of birth.

Stuart Machin anticipates that M&S's online operations will be running "fully" within the next four weeks as recovery efforts continue.

Last month, the retailer began to reinstate online sales, allowing customers in England, Scotland, and Wales to purchase a selection of its popular fashion ranges and new home products for delivery.

Bosses told the firm’s annual general meeting in London on Tuesday that click and collect and next-day delivery operations have not yet returned, but should be back within weeks.

Stuart Machin, Marks & Spencer chief executive

Mr Machin said: “Currently, half of online is open but not areas like click and collect. Within the next four weeks we are hoping for the whole of online to be fully on.

“Then our focus will be getting the Donington site back and running.

“We’re hoping that by August we will have the vast majority of this behind us and people can see the full M&S.”

Chairman Archie Norman highlighted that the company has been progressing through its recovery programme to return operations to normal.

“Every week new systems are coming back,” he said.

“Hopefully in a few weeks we’ll be humming – we’re hopeful we’ll be back to full operations very shortly.”

Mr Norman also highlighted that executive pay deals could be impacted by any drop in financial performance caused by the cyber attack this financial year.

He added: “The financial effect of this will be taken into account with regards to incentive pay, but it’s too early to say.

“We are planning to come back stronger and want to go gangbusters for the rest of the year, but whatever the impact on shareholders, that comes through in remuneration as well.”

Shareholders are voting on the group’s pay deal for the year to March, which saw Mr Machin’s overall pay packet jump by 39 per cent to £7.1 million, driven by performance-linked bonuses.

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