Marks & Spencer (M&S) has instructed hundreds of agency workers at its key Castle Donington distribution centre to stay home following a major cyberattack that has disrupted operations. The UK retail giant is battling to restore full functionality after the cybersecurity breach, which has already forced the suspension of online orders and caused pricing issues in stores.
Cyberattack Disrupts M&S Supply Chain
According to Sky News, around 200 agency staff scheduled for shifts at M&S’s East Midlands logistics hub were told not to report for work as the company deals with the fallout. Agency employees make up roughly 20% of the workforce at the Castle Donington warehouse, a crucial hub for clothing and homeware distribution.
While permanent staff have been asked to work as usual, the reduced workforce signals ongoing challenges in supply chain operations. A source close to M&S stated: “There is work for them to do,” suggesting that core staff are managing essential tasks amid the crisis.
Ongoing IT Issues Impact Stores and Online Sales
M&S first disclosed the cyberattack last week, leading to the shutdown of online orders—though stores remain open. Over the weekend, forecourt shops faced disruptions, with staff reporting that reduced-price yellow labels could not be applied to products due to system failures.
In a recent investor update, M&S assured customers that its product range remains viewable online and stores are operational. However, the company admitted that full recovery could take time, with retail insiders describing the attack as “extensive.”
Financial Impact and Investor Concerns
The M&S share price dropped another 2.4% on Monday, adding to last week’s decline as investors grow uneasy over the prolonged disruption. The company has not provided a timeline for full recovery, leaving uncertainty about when e-commerce services will resume.
M&S has yet to disclose further details about the cyberattack’s origin or scope, but experts suggest it could be a ransomware attack or data breach. The retailer is working with leading cybersecurity specialists to restore systems and prevent further damage.
