The Co-operative Group has disclosed an £80m blow to half-year profit following a destructive cyber attack earlier this year.
The retail and funerals specialist revealed that it had tumbled into a loss in the first half of 2025 after being targeted by a "malicious" cyber attack, as reported by .
Customers encountered bare shelves and payment difficulties during the aftermath of the cyber incident in April, as numerous retailers were affected.
The firm disconnected portions of its IT infrastructure following the attack, during which hackers gained access to and stole members' personal information.
First-half sales declined by 2.1 per cent as a result of the attack, the Co-op reported. Nevertheless, the organisation reassured markets that sales increased 1.5 per cent when excluding the attack's impact.
Debbie White, the chair of Co-op, stated that the attack presented "significant challenges" to the enterprise.
"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," White said.
Spencer Young, analyst at Delinea, commented that the news "underscores the scale of disruption that identity-based attacks can have.
"Despite growing awareness, attackers continue to exploit weaknesses in identity and credentials to infiltrate IT systems, disrupt operations, and even compromise customer data. The financial and reputational impact is a stark reminder that cyber resilience now depends on prioritising identity security," he added.
Cost pressures weigh on Co-op
The cyber incident wasn't the sole challenge confronting the Co-op during the opening six months of 2025.
The retailer highlighted that earnings were also affected by substantial cost pressures, encompassing Real Living Wage and National Insurance rises alongside fresh Extended Producer Responsibility levies.
"The most significant effects of these headwinds have been felt in the first half of the year; longer-term, offsetting mitigations are underway," the company said.
Elevated national insurance contributions took effect in April following their announcement in last year's Budget.
Chief executive, Shirine Khoury-Haq, added that Co-op is "stronger and more resilient" than in the past, and "better able to navigate the headwinds that all businesses are facing".
"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."
