The Co-op Group has given an update on last month’s cyber attack, which disrupted stock supply to stores and saw some members’ data compromised.
The retailer says it is in the ‘recovery phase’ after the atttack ransomware gang DragonForce, which forced it to shut down some of its systems.
This led to empty shelves in some of the Group’s stores, and at other retail co-ops in the same buying Group. However the membership data at other retail co-ops is not at risk as they are separate entities.
In a post yesterday (15 May) on the Group’s website, CEO Shirine Khoury-Haq said: “Our amazing colleagues have been working day and night to protect our systems and get our operations back on track, and we can confirm that we are now in a much stronger position. Our stores are now receiving regular deliveries, so you can expect to find more of the products you need in your local store from this weekend.”
She added: “Across all our businesses, our teams are working hard to ensure we continue to provide the service that you expect from our Coop. We apologise in advance for any delays in our current service while we make sure that we bring the organisation back to normal as quicky, and as safely, as possible.
“We are all so grateful for your patience and support as we recover from this incident.”
In a post earlier this week on its website, the Group announced: “Following the malicious third-party cyberattack, we took early and decisive action to restrict access to our systems in order to protect our Co-op.
“We are now in the recovery phase and are taking steps to bring our systems gradually back online in a safe and controlled manner.
“In our Food business:
- “There will be improved stock availability in our Food stores and online from this weekend and we are working closely with our suppliers to restock our stores.
- “Our stock ordering system is now fully online, and we have switched all our orders back to the normal supply processes and systems.
- “All forms of payments including contactless, and chip and pin are working across our entire store estate.
“We’d like to thank all our colleagues, members, partners and suppliers for their support so far. We will provide further updates to our members as we continue to make progress from this cyber-attack.”
A report on the BBC website on 15 May says the Group avoided worse problems by acting quickly to pull the plug on its systems before they could be infected with ransomware. This has spared it some of the issues plaguing M&S, also hit by a cyber-attack.
One of the hackers claimed to the BBC they had spent some time in the Group’s software before being detected, stealing member data, but were caught before they could carry out a ransomware atttack.
Cyber expert Jen Ellis from the Ransomware Task Force told the BBC: “Co-op seems to have opted for self-imposed immediate-term disruption as a means of avoiding criminal-imposed, longer-term disruption. It seems to have been a good call for them in this instance.”
Meanwhile, other retail societies have outlined the impact on their shelves, and steps to fill the gap using local suppliers.
Lincolnshire Co-op told members: “Lincolnshire Co-op is an independent co-op and our membership systems are separate to the Co-op Group’s so this has not impacted our member data.
“However, we work with the Co-op Group as part of a buying group. The Co-op Group has taken proactive steps to keep its systems safe, due to the sustained malicious attempts by hackers to gain access. This has impacted the number of deliveries from the buying group we are getting to our food stores.
“We’re sorry if this means our members and customers might not be able to buy some of their usual products from us.
“Co-op Group are gradually bringing systems back online in a safe and controlled manner, which means we should begin to see an increase in deliveries into our food stores over the following weeks.
“Our colleagues have been working with our own supplier contacts to boost supply, we’ve increased deliveries from Love Local suppliers, and our shops continue to receive freshly baked goods from Gadsby’s. We also have ranges like Cook and Kumar in many stores, which further bolster our stock levels.”
Channel Islands Co-op has also said it is working with local suppliers to fill the gaps on shelves.
CEO Mark Cox thanked members and customers for their patience after the society was affected by “supply chain issues beyond our control” and is “actively securing alternative supplies – both locally and from other partners – to keep operations running as smoothly as possible”.
He said he expected to see more stock on the shelves each day this week as systems come back online across the UK, with the society working hard at “restoring full functionality as quickly as possible”.
Heart of England Co-op CEO Steve Browne said on the society website: “We’ve received so many messages of support from you, our valued member’. Whilst product availability is improving, it’s our duty as a co-operative to remain honest and transparent with you.
“We are continuing to receive stock daily, and we are also receiving increased stock from our local suppliers, who have been wonderfully supportive as we navigate through these challenging times.
“We remain in close contact with our colleagues at Co-op Group, and our colleagues in stores are doing everything they can to get products on the shelves as quickly as possible, to try and limit the impact on our members and customers.”
On Wednesday, 14 May, Browne updated members, apologising for the disruption and telling them: “We have taken significant steps to partner with alternative suppliers to boost product availability.
“Today, we have received a large delivery to our support centre in Coventry, where our dedicated colleagues have been working tirelessly to offload and distribute products to our stores. This spirit of cooperation is what sets us apart – and we are proud of it.”
A statement on the Radstock Co-op website apologised for the disruption and said colleagues had been “working tirelessly” to restore operations.
“We are pleased to to inform you that we are now in a significantly stronger position,” it added. “Our stores will soon be receiving regular deliveries, meaning you can expect to find an increased availability of products in your stores starting this weekend, with stock levels anticipated to return to normal at the end of next week.”
