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The Co-op has disclosed that a cyber-attack in April resulted in a staggering £206 million loss in revenue, pushing the retailer into a pre-tax loss of £75 million in the first half of 2025.
This compares to a £3 million profit during the same period last year. The attack, which hit both its retail stores and funeral parlours, caused widespread disruption, including empty shelves, payment system failures and the use of paper-based systems for funeral services.
Co-op chair Debbie White called the attack “malicious” and a “significant challenge” to the business, which also faced pressures from rising staffing costs and regulations. The company’s total group revenue for the six months to July 5 was £5.48 billion, down from £5.6 billion in 2024. The full financial impact is expected to be even higher, with the Co-op predicting a £120 million hit to full-year profits and only limited insurance coverage to offset the losses.
Hackers, who gained access via “social engineering” by impersonating a Co-op employee, managed to steal data from all 6.5 million of the retailer’s members. While no financial information was compromised, names, addresses, and contact details were stolen. Despite the challenges, Co-op chief executive Shirine Khoury-Haq praised the business’s response, noting that employees acted quickly to shut down compromised systems before the hackers could deploy ransomware.
The Co-op’s attack occurred amid a wave of cyber incidents targeting other major UK retailers, including Marks & Spencer and Harrods. While Marks & Spencer faced a £300 million financial hit and halted online sales for six weeks, the Co-op was able to resume normal trading more quickly due to its early detection and response. The Co-op is now focused on rebuilding “better and stronger,” with plans to open 30 new stores in the latter half of the year.
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