How Much Did The Co-Op Cyberattack Actually Cost?

The Co-operative Group has said that the big cyber attack in April led to a huge downturn in its first half of 2025. The retailer reported an £80 million earnings hit, which pushed it into a £75 million underlying pre-tax loss for the six months to July 5. A year earlier it had made a £3 million profit over the same period. These figures came directly from the Co-op’s half-year results.

The incident wiped £206 million from sales as systems were shut down and shoppers struggled with empty shelves and payment problems. The impact stretched across its businesses, which span food retail, funerals, legal services and insurance. According to Reuters, the disruption took £80 million off operating profit and left the group with £32 million in underlying operating losses, compared with £47 million in operating profit the year before.

The Co-op said the hack was “sophisticated” and that it acted quickly to shut down a number of systems in order to contain the threat. That move prevented further ransomware from being installed, but it caused severe short-term disruption.

 

What Does The Full-Year Cost Look Like?

 

While the immediate half-year hit was large, the Co-op has also forecast what it believes will be the total bill. According to its announcements, the full-year earnings impact is expected to reach about £120 million. That amount adds the £80 million cost in the first half with a further £40 million that the retailer expects to absorb in the second half as it gets operations back on track.

The group has said the disruption is easing but not over. It continues to face slower customer numbers in convenience stores, and some back-office functions are still recovering months after the attack. The expectation is that the second half impact will be smaller, but the damage has already been done to its yearly earnings.

This puts the Co-op in a weaker financial position as it moves into the next year. The attack has delayed expansion plans, though management now says 30 new food store openings are back on the table for the second half.

 

 

How Were Customers And Members Affected?

 

The fallout for customers was visible almost immediately. Shoppers found shelves empty and card payments failing. According to the group, the disruption forced it to prioritise deliveries to rural “lifeline” stores to make sure isolated communities had food supplies. Essential services such as its funeral business were also given priority to stay open.

Members of the Co-op also suffered a breach of trust. The company confirmed in July that hackers accessed the data of all 6.5 million members. Hackers had impersonated employees to trick staff into handing over account access. They were able to copy a company file, though they did not succeed in installing ransomware across the platforms.

As a gesture to members, the group gave a £10 discount on a £40 shop once stores were able to return to normal trading. It also worked to support independent co-op societies and franchise partners who were caught up in the disruption.

 

How Has Leadership Responded To This?

 

Chairwoman Debbie White described the incident as one of the most difficult periods in the group’s history. She praised the response of the 53,000 staff who worked to keep services running. She said the strength of the balance sheet allowed the group to continue to serve members and communities through the disruption.

Chief executive Shirine Khoury-Haq said the incident showed both strengths and weaknesses in the business. She said the attack had underlined the need to make structural changes in the food business and led to the formation of a new commercial and logistics division. The company has also reshaped its leadership team as it looks to recover.

Khoury-Haq told the Press Association that the incident offered a moment to pause and adjust. She said the shame would be if the Co-op did not come out stronger from such an event.

 

How Does This Compare To Others In Retail?

 

The attack did not hit the Co-op alone. Marks & Spencer was also struck, leaving its online orders frozen for 6 weeks from Easter weekend. M&S reported a profit hit of up to £300 million from the hack.

The timing showed how exposed high street retailers are to cyber crime. Both groups had to shut systems to contain the threat, which caused long-term costs as well as immediate sales losses. For the Co-op, the final tally of around £120 million is less than the hit suffered by M&S but still pretty bad for a member-owned business built on relatively thin margins.