Latest figures highlight the importance of operational resilience amid growing cyber risk…

Latest figures released by Marks & Spencer reveal that sales increased in the year to 28th March, despite the company suffering from one of the most severe cyber incidents faced by a UK retailer in recent years.

Whilst adjusted pre-tax profits dropped 23.8% to £671.4 Million, the retailer’s FY26 results show sales including revenue from Ocado increased by 24.8% to £17.4 Bn.

That is despite online operations reportedly taking 15 weeks to fully recover from the cyber attack. In-store stock availability was also affected for weeks following the incident.

Robyn Duffy, consumer markets senior analyst at RSM UK, said the results demonstrated the strength of the retailer’s underlying proposition despite the operational disruption.

“The strength of M&S’s underlying strategy – particularly the continued expansion of its food business – enabled the retailer to recover lost ground rapidly once operations normalised. It was an unprecedented event, but what now looks equally unprecedented is the scale of the recovery”, she said.

A key factor behind the recovery was continued momentum in the retailer’s food division, which has remained a standout performer against a challenging consumer backdrop.

“Food is the jewel in the crown and continues to outperform the wider grocery market as consumers remain willing to selectively trade up for quality and convenience,” commented Duffy.

She added that improving perceptions of the retailer’s fashion offer were also strengthening the wider business.

The results are likely to fuel wider discussion across the retail sector around operational resilience and crisis preparedness. While cyber attacks can create immediate financial and reputational pressure, M&S’s performance highlights how investment in core operations, customer loyalty and diversified revenue streams can help retailers withstand major shocks.

However, RSM warned that the retailer still faces a difficult consumer environment in the months ahead, with rising household costs and geopolitical uncertainty continuing to weigh on discretionary spending.