In a major blow to one of Britain’s oldest mutuals, the Co-op Group revealed a staggering £80 million loss in operating profit due to a cyberattack that struck earlier this year.
Co-op warns of $161 million profit hit from cyberattack
The 181-year-old group, which operates across food retail, funeral care, legal, and insurance services, disclosed that the disruption from the April attack slashed its revenue by £206 million during the six months leading to 5 July.
“We responded swiftly by shutting down key systems to isolate the threat,” a Co-op spokesperson said.
While this quick response helped contain further damage, it led to widespread operational chaos.
Systems Shut Down to Contain Threat
The incident forced the group to temporarily pull the plug on multiple internal systems. The disruption severely impacted day-to-day operations across its network.
Interestingly, the attack came not long after a similar hit on rival Marks & Spencer, hinting at a possible trend in retail-targeted cybercrime.
Financial Impact Turns Profits to Losses
Here’s a breakdown of how the cyberattack hit Co-op’s bottom line:
| Metric | H1 2024 | H1 2023 |
|---|---|---|
| Revenue Loss | £206 million | – |
| Operating Profit Impact | -£80 million | – |
| Underlying Pre-Tax Result | -£75 million | £3 million profit |
Despite a solid foundation across its diversified business arms, the breach tipped the company into a pre-tax loss of £75 million, a sharp fall from the modest £3 million profit it posted in the same period last year.
A Note of Cautious Optimism
Looking ahead, the Co-op expects the financial hit from the hack to ease during the second half of the year.
“We’re now seeing stabilisation and gradual recovery,” said a company insider familiar with the matter.
The Co-op cyberattack has once again raised serious alarms about the vulnerabilities in the UK’s retail sector. With customer trust and operational continuity at stake, experts say it’s time for businesses to prioritise cyber resilience.
As the Co-op works to regain its footing, the industry is left with one clear message: no system is too old, or too big, to be breached.
Retail Sector Under Siege
The UK’s retail industry has found itself increasingly targeted by sophisticated cybercriminals in recent months. While financial institutions have long invested in cybersecurity, many retail giants still rely on legacy systems, making them prime targets.
Cybersecurity analysts suggest the attack on Co-op might be linked to broader ransomware campaigns sweeping across Europe.
A Wake-Up Call for British Business
This latest breach is more than just a headline, it’s a stark reminder of the digital age we live in. Retailers, especially those with wide-ranging services like Co-op, must now reassess how prepared they truly are.
Co-op’s swift response may have helped prevent deeper damage, but the cost — both financial and reputational is undeniably steep.
As the dust begins to settle, the message is clear: cybersecurity can no longer be an afterthought.
