The Co-op has reported that a “sophisticated cyberattack” earlier this year has wiped £80 million from its profits, underscoring the escalating cost of cybercrime for some of the UK’s largest businesses.
In results published on Monday, the mutual said the breach disrupted both its grocery and funeral divisions, leading to gaps on supermarket shelves and delays to key services. The company estimated that revenues took a £206 million hit as a result of the attack.
Management said it moved “quickly and decisively” to contain the incident, temporarily shutting down parts of its systems to limit the damage. Essential services, including funerals, were prioritised, while food stock was redirected to rural “lifeline” stores and to independent society partners to help keep goods moving.
The financial fallout included around £20 million in direct costs to manage the crisis, in addition to wider business disruption. The Co-op also introduced a goodwill measure for its members, offering a £10 discount on a £40 shop to ease frustrations caused by the disruption.
The attack highlights the growing risks companies face from cybercrime, with large-scale incidents increasingly spilling into supply chains and day-to-day operations. The Co-op’s difficulties echo similar challenges faced by other major UK businesses that have been hit this year, reflecting how cyberattacks have shifted from being purely technical threats to serious financial and reputational challenges.
Despite the setback, the Co-op stressed that its swift response limited the potential for greater damage. “Our priority was to protect essential services and support our members and communities through a challenging period,” the group said in a statement.
The figures come as companies across all sectors are facing rising pressure to bolster their cybersecurity defences amid growing sophistication in criminal tactics. Industry experts have warned that businesses must treat cyber resilience as a core operational priority, not just an IT issue, as the financial and reputational stakes continue to climb.
The Co-op, one of Britain’s largest consumer cooperatives, has long emphasised its community focus, a theme that carried through its handling of the breach. By prioritising funeral operations and ensuring access to groceries in rural areas, the group sought to balance crisis management with its broader social role.
Nevertheless, the £80 million hit to profits highlights the scale of financial risk posed by such attacks. With cybercrime on the rise, the Co-op’s experience serves as another warning for large corporates about the need for robust protections and contingency planning in the face of an increasingly hostile digital environment.