Retailer Co-op is to offer its members £10 off a minimum shop of £40 following disruption caused by a recent cyber attack. The grocery chain said it had not yet completely recovered from being targeted by hackers last month,which resulted in a significant amount of customer data being stolen. Although the offer appears generous, one analysts said the majority of customers do not spend £40 or more per shop, so it would not appeal to many people. The one-off deal, which runs from Wednesday for a week, is open to existing Co-op members, and a shoppers wanting to sign up, but not to staff. A Co-op source said since stock levels had returned to normal over the past few weeks, there had been a strong pick-up in sales. The offer was to show that the Co-op was "on the front foot" ahead of summer trading, the source told the BBC. But retail consultant Catherine Shuttleworth said the offer indicated that members may have started to shop elsewhere and was an effort from Co-op to try to get them back. Co-op said if members spend £40 or more in store, they will get £10 off their shop. "You'd be pushed to spend that in a Co-op - the average shop would be between £10 and £15. It's a very high threshold for a convenience business," added Ms Shuttleworth. She said the chain was trying to show commitment to its frequent shoppers, but suggested the business was "not going to be huge redemptions on that offer". Ms Shuttleworth said members would probably appreciate practical help on securing their data more. In some rural areas such as Skye in Scotland, the Co-op is the main shop - albeit with a choice of other smaller retailers. But the majority of Co-op stores are in urban areas with more competition. The retailer said it was "very near to making a full and complete recovery" from the recent cyber attack and added its 2,300 stores were returning to usual trading. During the attack, whichcame to light in May, hackers got into Co-op's technology networks and stole past and present member data. The retailer shut down its systems to restrict the damage, and managed to continue to trade, but there is still some behind-the-scenes disruption, the source said. Customers complained of empty shelves as the incident disrupted deliveries of fresh stock. Co-op said its offer was a "gesture of appreciation" to its 6.5 million members. The BBC understands that Co-op is not planning to offer any fraud prevention or identity monitoring. Ms Shuttleworth estimated that the cyber-attack would have cost Co-op "millions of pounds" in lost sales. She said the offer was "a call to customers to come back", and for Co-op to show that it was open for business. "If you can't manage to get what you want, you go elsewhere," she added.
Co-op offers members discount on shopping after cyber attack
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"Co-op Introduces Discount for Members Following Cyber Attack Disruptions"
Bbc News
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TruthLens AI Summary
Co-op, the well-known grocery retailer, is introducing a promotional offer for its members, providing £10 off a minimum purchase of £40 in response to the disruptions caused by a recent cyber attack. This initiative comes after the company faced significant challenges when hackers breached its systems last month, resulting in the theft of a considerable amount of customer data. The offer is available for a week starting Wednesday and is designed to encourage existing members to shop at Co-op, although it has drawn criticism from analysts who note that the spending threshold may be too high for many customers. According to retail consultant Catherine Shuttleworth, the average shopping basket at Co-op is typically between £10 and £15, making the £40 requirement a barrier for a substantial portion of its clientele. The Co-op has stated that this promotion reflects their commitment to member loyalty and aims to boost sales as they prepare for the upcoming summer season.
Despite the generous appearance of the discount, experts suggest that the Co-op's strategy may stem from a need to regain customers who have turned to competitors following the cyber attack. The retailer has been working to stabilize its operations, having restored stock levels and improved sales in recent weeks. However, the lingering effects of the attack, which included disrupted deliveries and empty shelves, have raised concerns about customer retention. While the Co-op emphasizes that it is nearing a complete recovery, there are still operational challenges. Notably, the company has not announced plans for additional measures such as fraud prevention or identity monitoring, which some experts believe would be more beneficial to customers. Overall, this promotion can be seen as both a gesture of appreciation to its 6.5 million members and a strategic move to re-establish the Co-op's presence in a competitive retail environment.
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