The Co-operative Group

The Co-operative Group

The Co-operative Group (Co-op) suffered a **malicious cyber attack in April 2025**, resulting in a **£80m ($107m) hit to its H1 2025 operating profits**, including **£20m in one-off costs**. The attack caused **payment disruptions across retail systems**, leading to **£206m in lost sales revenue** and **widespread product shortages**. Critical operations, including **funeral homes**, reverted to **paper-based processes**, while stores faced **empty shelves**. The breach compromised **personal data of all 6.5 million member customers**, exacerbating financial and reputational damage. The incident contributed to a **£75m pre-tax loss** (vs. a £3m profit in H1 2024), with full-year profit impact projected at **£120m**. Limited insurance recovery was expected, as coverage applied only to **immediate response costs**, not long-term losses. The attack exposed vulnerabilities in Co-op’s **IT infrastructure**, particularly in its **Food business**, prompting structural reforms. Group revenue declined **2.1% YoY** (£5.6bn → £5.4bn), though net debt reduced significantly from **£1bn (2021) to £43m**. Leadership acknowledged the attack’s **severe operational and financial consequences**, emphasizing ongoing efforts to mitigate future cyber risks.

Source: https://finance.yahoo.com/news/co-operative-group-reports-h1-152119359.html

TPRM report: https://www.rankiteo.com/company/the-co-op-group

"id": "the1692016092625",
"linkid": "the-co-op-group",
"type": "Cyber Attack",
"date": "6/2021",
"severity": "100",
"impact": "5",
"explanation": "Attack threatening the organization's existence"
{'affected_entities': [{'customers_affected': '6.5 million (member customers)',
                        'industry': ['retail', 'funeral services'],
                        'location': 'United Kingdom',
                        'name': 'Co-operative Group (Co-op)',
                        'size': 'large (£5.4bn revenue in H1 2025)',
                        'type': ['retailer', 'funeral services provider']}],
 'data_breach': {'data_exfiltration': 'yes (theft of personal data)',
                 'number_of_records_exposed': '6.5 million (member customers)',
                 'personally_identifiable_information': 'yes',
                 'sensitivity_of_data': 'high',
                 'type_of_data_compromised': ['personally identifiable '
                                              'information (PII)']},
 'date_detected': '2025-04',
 'description': 'The Co-operative Group reported an £80m ($107m) hit to its H1 '
                '2025 operating profits due to a cyber attack in April 2025. '
                'The attack disrupted IT systems, caused payment issues, '
                'product shortages, and led to the theft of personal data from '
                "6.5 million member customers. The group's funeral homes "
                'reverted to paper-based operations, and stores faced empty '
                'shelves. The incident contributed to a £206m impact on sales '
                'revenue and a £75m underlying pre-tax loss for H1 2025, '
                'compared to a £3m profit in the same period the prior year. '
                'The full-year profit impact is projected at £120m, with '
                'limited insurance recovery.',
 'impact': {'brand_reputation_impact': 'significant challenges noted by Co-op '
                                       'chair Debbie White; incident described '
                                       "as 'malicious'",
            'data_compromised': {'personal_data': {'customers_affected': '6.5 '
                                                                         'million '
                                                                         '(member '
                                                                         'customers)',
                                                   'type': ['personally '
                                                            'identifiable '
                                                            'information '
                                                            '(PII)']}},
            'financial_loss': {'full_year_profit_impact': '£120m',
                               'insurance_recovery': 'limited',
                               'one_off_costs': '£20m',
                               'operating_profit_impact': '£80m (H1 2025)',
                               'pre_tax_loss': '£75m (H1 2025, vs £3m profit '
                                               'in H1 2024)'},
            'identity_theft_risk': 'high (due to theft of personal data from '
                                   '6.5 million customers)',
            'operational_impact': ['payment disruptions',
                                   'widespread product shortages',
                                   'empty shelves in stores',
                                   'funeral homes reverted to paper-based '
                                   'operations'],
            'revenue_loss': {'group_revenue_decline': '2.1% (from £5.6bn in H1 '
                                                      '2024 to £5.4bn in H1 '
                                                      '2025)',
                             'sales_revenue_impact': '£206m'},
            'systems_affected': ['IT systems (retailer)',
                                 'payment systems',
                                 'inventory management systems',
                                 'funeral home operations (reverted to '
                                 'paper-based)']},
 'lessons_learned': ['Highlighted strengths but also areas needing focus, '
                     'particularly in the Food business.',
                     'Need for refining member and customer proposition.',
                     'Importance of structural changes to the business for '
                     'long-term success.',
                     'Disciplined investment approach to manage cyber impact.'],
 'post_incident_analysis': {'corrective_actions': ['Refining member and '
                                                   'customer proposition.',
                                                   'Structural changes to the '
                                                   'Food business.',
                                                   'Disciplined investment '
                                                   'approach to reduce cyber '
                                                   'impact in H2 2025.']},
 'recommendations': ['Continue refining member and customer propositions.',
                     'Implement structural changes in the Food business.',
                     'Maintain a disciplined investment strategy to mitigate '
                     'future cyber risks.',
                     'Enhance cyber resilience measures to prevent similar '
                     'incidents.'],
 'references': [{'source': 'Retail Insight Network (GlobalData)'}],
 'response': {'incident_response_plan_activated': 'yes (front-end elements of '
                                                  'cyber insurance utilized '
                                                  'for immediate response)',
              'remediation_measures': ['refining member and customer '
                                       'proposition',
                                       'structural changes to the Food '
                                       'business',
                                       'disciplined approach to investment to '
                                       'manage cyber impact in H2 2025'],
              'third_party_assistance': 'yes (technology space third parties '
                                        'via cyber insurance)'},
 'title': 'Co-operative Group Cyber Attack (April 2025)',
 'type': ['cyber attack', 'data breach', 'operational disruption']}
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