default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Macy's Discloses Data Breach

The company reported a slump in sales after confirming customers were exposed to a data hack last month.
Macy's Store | Source: Shutterstock
By
  • Bloomberg

NEW YORK, United States — Macy's Inc. slumped the most in three months after confirming that some customers were exposed to a data hack while shopping on its website last month.

“We are aware of a highly sophisticated and targeted data security incident related to macys.com that affected a small number of customers during a one-week period in October,” the company said in an emailed statement.

Macy’s fell 11 percent. It was the second-biggest decline in the S&P 500 Index on Tuesday, trailing only Kohl’s Corp. which plunged 19 percent after disappointing investors with its latest quarterly earnings.

Kohl’s report renewed concerns on Wall Street that department stores are losing the fight for market share to other retailers. Meanwhile, the Macy’s hack could spook shoppers during the critical holiday period.

“Consumers could become guarded, hindering shopping at Macy’s,” according to Poonam Goyal, an analyst with Bloomberg Intelligence.

Macy’s, which reports earnings on Nov. 21, brought in a forensic firm to address the threat and reported the incident to federal law enforcement for investigation. In a letter to those affected, the company said credit-card information and other data entered on the checkout page was captured by hackers. Macy’s said the issue has been resolved.

In addition to being notified about the hack, affected customers will receive instructions on how to enrol in consumer protection services, Macy’s said.

The company didn’t specify how many customers were affected by the breach.

The hack highlights the risks that retailers face as shoppers move increasingly online. In the spring of 2018, the parent company of Saks Fifth Avenue and Lord & Taylor, Hudson's Bay Co., said it had a data security issue at some of its North American stores, and security firm Gemini Advisory reported that over 5 million credit and debit card numbers from the breach were being sold online.

Macy’s has been hacked before as well, with a breach affecting a small number of customers last year.

By Kiley Roache, Jordyn Holman; Editors: Andrew Martin, Jonathan Roeder, Lisa Wolfson

In This Article
Topics
Organisations
Tags

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

By investing in an elevated product and shopping experience, Spanish retailers Inditex and Mango are seeing tremendous growth despite fierce competition from the likes of Temu and a cash-strapped consumer.


The ByteDance-owned app’s e-commerce play has been met with mixed response from users. Still, sales seem to keep ticking up.



view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024