A Crippling Cyberattack Leaves Co-op with a £120M Loss and a Data Breach of 6.5M Members
The British retail chain Co-operative Group has faced one of the most severe cyberattack repercussions in recent years: by the end of 2025, the company expects profits to fall by £120 million ($160.8 million). The April cyber incident crippled store operations, left shelves empty, and resulted in the exposure of data belonging to all 6.5 million cooperative members.
According to the retailer’s estimates, the trading disruption cost £206 million in lost revenue and reduced interim earnings by £80 million. The second half of the year is forecast to bring a further £40 million in losses. Consequently, the group is now reporting a pre-tax loss of £75 million, compared to a £3 million profit the previous year. Operating results were also negative: a £32 million loss, versus last year’s £47 million gain. The financial strain stems not only from the attack but also from rising personnel costs due to higher insurance contributions.
Immediately after the breach, the company was forced to shut down several IT systems to contain the threat. Attackers had gained access to cooperative member data by posing as employees. Although they managed to copy internal files, their attempt to spread malware or encrypt the infrastructure ultimately failed. Nevertheless, customers were met with empty shelves and disrupted payment services.
In July, Co-op officially confirmed that all member data had been compromised. To mitigate the fallout, the chain redirected stock to smaller rural stores, supported independent cooperatives and partner outlets, and offered members discounts as a gesture of goodwill. Preserving the operation of key services, including its funeral business, was treated as a top priority.
Company leadership admits the cyberattack exposed vulnerabilities—particularly in the grocery segment. Expansion plans were temporarily suspended, though the group has now announced their resumption, with 30 new sites expected to open by year’s end. To bolster resilience, a new division unifying commerce and logistics has been established.
The crisis was weathered thanks to the efforts of 53,000 employees, whose dedication kept operations running at a minimal yet essential level. Chief Executive Shirine Khoury-Haq emphasized that the attack marked a moment of reckoning: the company intends to emerge from the crisis more resilient than before.
Meanwhile, the UK has witnessed a broader surge in cyberattacks targeting large enterprises. Marks & Spencer faced a similar crisis in the spring, with online sales halted for six weeks and losses reaching £300 million. Jaguar Land Rover continues to experience serious disruptions following a cyber breach. Against this backdrop, Co-op has urged authorities to introduce mandatory reporting of cyber incidents and ransom payments, warning that the UK remains a prime target precisely because companies often choose to pay attackers in secret.
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