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    Loss making Co-op reveals £206 million cost of “malicious” cyber attack

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    By Jonathan Prynn

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    Loss making Co-op reveals £206 million cost of malicious cyber attack

    A “malicious and sophisticated” cyber attack sent the Co-op plunging into the red in the first half of the year as it revealed it lost more than £200 million in revenue.

    The grocery stores, financial services and funeral homes group was crippled by hackers in April that left shelves empty in stores across the UK. Data on all 6.5 million members was stolen.

    It came days after a similarly disruptive attack on M&S.

    Today Co-op revealed the financial cost of the hack in the first six months of the year with estimated lost revenue of £206 million and profits by £80 million, including £20 million of direct costs and £60 million of lost margin.

    That left Co-op with a £75 million first half loss compared with a £3 million profit last year.

    Sales were down 2.1% at £5.48 billion with food sales 1.6% lower at £3.62 billion. Co-op has around 2,300 stores in the UK.

    The full cost of the attack could be even higher as the Co-op said it was expecting some impact in the second half of the year.

    As well as the cyber hack profitability was hit by “expected and significant cost headwinds” including the rise in wages , employer National Insurance contributions and the “packaging tax” under the new Extended Producer Responsibility regime.

    Co-op’s chair Debbie White said: “The first half of 2025 brought significant challenges, most notably from a malicious cyber attack. Our balance sheet strength and the magnificent response of our 53,000 colleagues enabled us to maintain vital services for our members and their communities.

    “We must now build our Co-op back better and stronger to meet the challenges and opportunities that lie ahead.“

    In its outlook statement Co-op said it anticipated “continued cost headwinds, global volatility and high competition. In response, we remain committed to a disciplined approach to investment to support our future, while managing a reducing level of cyber impact through the second half. “

    It plans to open 30 new stores in the second half of the year.

    Chief executive Shirine Khoury-Haq, said: “The cyber-attack highlighted many of our strengths. But more importantly, it also highlighted areas we need to focus on – particularly in our food business.

    “We’ve already started on this journey, refining our member and customer proposition, making structural changes to our business, and setting our Co-op up for long-term success.”

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