M&S’s rapid grocery sales growth is reported to have stalled in the fallout of the cyberattack on the business in April.
According the The Telegraph, which cites unpublished figures from analysts at NIQ, M&S’s grocery sales growth was just 0.8% year on year in the four weeks to 17 May, covering the period after the attack unfolded in late April.
It suggests the retailer’s growth slowed dramatically as the cyberattack led to availability issues in its food stores.
Published NIQ data covering the 12 weeks to 17 May – including eight weeks before attackers struck – has M&S’s grocery sales growth at 10.8% year on year.
Separate Kantar data also puts M&S Food’s sales in double-digit growth over 12 weeks. Spending on groceries at the retailer increased 12.3% year on year in the 12 weeks to 18 May, according to the Kantar data.
NIQ said it did not recognise the four-week M&S grocery sales figure, and only data from its monthly published market update should be cited.
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M&S has been one of the fastest-growing grocers consistently in both Kantar and NIQ data since last year. The retailer overtook Waitrose in market share in November, according to NIQ.
NIQ data has M&S still ahead in the 12 weeks to 17 May, with 3.8% of the market compared with Waitrose’s 3.7%.
However, in the aftermath of the attack M&S slipped behind again, with its share dipping to 3.3% in the four weeks to 17 May according to the data seen by The Telegraph. It sold fewer items than in the same four-week period a year earlier.
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M&S Food stores were hit by availability issues as the retailer took systems offline in the days after the cyberattack began over the Easter bank holiday weekend.
Online delivery of clothing and homeware remains suspended as M&S rebuilds systems. It has estimated the online disruption will continue until July, wiping £300m off its annual profits.
“We have made good progress in growing our Food business and gaining market share over the long term,” said an M&S spokesperson. “The most recent Kantar report shows market share growth of over 12%, which is ahead of the market and underlines our resilience.
“Our stores are back to normal for our customers and have been for some time. We are getting on with providing the best quality products and service for our customers. In fact, just this week we have launched 100 new or upgraded M&S Food products for summer.”
Steve Dresser, CEO at Grocery Insight, said M&S should be congratulated for sustaining any level of grocery sales growth in the disruption that immediately folllowed the cyberattack.
“With the issues that hit them, it’s a major good news story that they were still in positive territory,” Dresser wrote on LinkedIn.
“Well done to the teams.”
M&S is also facing the threat of class action data lawsuits from customers affected by the breach, which the retailer has said included dates of birth, ‘household information’ and telephone numbers, but not useable card payment details. A law firm promising M&S customers compensation over the data breach told The Grocer it had signed up more than 300 claimants, a week after going public with the action.
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