Chart: Just one in four UK retailers feels highly prepared for cyber incidents

The report, authored by Retail Economics and Barclays UK Corporate Banking, nevertheless shows that cybersecurity is viewed as the biggest risk by retail leaders.

Nearly six out of 10 (58%) of the 117 retail leaders surveyed as part of the study named cyber and data security among the top three high-level risks most likely to derail their organisation’s plans over the coming year. That puts it marginally ahead of potential operational (57%) and financial (55%) problems.

“Cyber threats are no longer just an IT issue. They cut to the heart of customer trust, brand reputation and operational continuity. It’s concerning that so many retailers still lack the confidence and capability to respond effectively,” said Retail Economics chief executive Richard Lim.

More than one in 10 (11%) of retailers described themselves as unprepared for cyber attacks. This is particularly worrying given the huge impact coordinated attacks have been shown to have even on retailers spending considerably on defence.

Marks & Spencer chief executive Stuart Machin speaking in May said that they had been investing in new cyber defence systems for two years and had recently carried out a cyber-attack simulation, but they were foiled by a hacker entering through a third party. The retailer resumed some online trading last week after being fully offline since the Easter weekend.

Despite most retailers only feeling moderately prepared at best for a cyber incident, two thirds say they have increased their focus on cybersecurity over the past 12 months, including upgrading systems and stress-testing their plans. This has the upside of potentially driving further improvements to retailers’ digital performance, says Lim.

“The most forward-thinking retailers are using cyber risk as a catalyst for broader transformation. They are accelerating investment in digital infrastructure, strengthening internal agility and embedding resilience across their operations. These are the bold decisions, made under pressure, that will shape long-term success.”