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Co-op offers members £10 discount on shopping after cyber attack | Co-op offers members £10 discount on shopping after cyber attack |
(about 1 hour later) | |
Retailer Co-op is to offer its members £10 off a minimum shop of £40 following disruption caused by a recent cyber attack. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | Co-op said if members spend £40 or more in store, they will get £10 off their shop. |
Easy to redeem? | Easy to redeem? |
"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. | "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". | 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. | 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. | 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. | But the majority of Co-op stores are in urban areas with more competition. |
'Near to full recovery' | 'Near to full recovery' |
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. | 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, which came to light in May, hackers got into Co-op's technology networks and stole past and present member data. | During the attack, which came 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. | 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. | 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. | 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. | 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. | 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. | 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. | "If you can't manage to get what you want, you go elsewhere," she added. |
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