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Rivals cash in as M&S cyber-attack halts online sales
- Marks & Spencer's online sales were halted for nearly seven weeks due to a cyber-attack, leading to a decline in sales while competitors like Next, Zara, and H&M benefited.
- M&S's clothing sales dropped by 20% in a month compared to the previous robust growth, missing crucial summer sales due to the cyber-attack.
- Next, Zara, and H&M experienced sales growth during M&S's online shutdown, with Zara's sales soaring to 27.8% and H&M's to 18.1%.
- Primark, lacking a strong online presence, saw a decline in sales, showing the significance of e-commerce in leveraging M&S's digital issues.
- Despite the setback, M&S emphasized strong store performance and retaining its position as the UK's largest clothing retailer by value.
- Rivals like Next capitalized on M&S's vulnerability, with Next's brand sales growth accelerating post the online shutdown.
- M&S's cyber-attack led to a market shift benefiting competitors with robust online services like Zara and H&M.
- Analysts noted the impact of the cyber-attack on M&S, attributing the rise in sales for rivals to the digital disruption experienced by M&S.
- The cyber-attack lasted from April 25 to June 10, affecting M&S's e-commerce operations that usually contribute a third of its clothing and homeware sales.
- M&S emphasized that the cyber-attack was a temporary setback and highlighted success in its store operations, especially in womenswear.
- The industry-wide clothing sales grew by 4% in the period when M&S's sales declined by 20%, showcasing the impact of the cyber-attack.
- The article discusses how M&S's competitors capitalized on the digital vulnerability caused by the cyber-attack, benefiting from increased sales.
- Online services played a crucial role in driving sales for rivals like Zara and H&M, contrasting Primark's decline in sales due to its limited online presence.
- M&S faced a significant blow to its e-commerce operations from the cyber-attack, leading to missed sales opportunities and market share loss to competitors.
- Despite the challenges, M&S maintains its position as the top UK clothing retailer by value and sees the cyber-attack as 'a moment in time.'
- The article highlights the competitive advantage gained by Next, Zara, and H&M during M&S's online sales suspension, showing the importance of digital readiness in the retail sector.
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