Starbucks, Other Retailers Hit by Ransomware Attack on Tech Provider

A ransomware attack on Blue Yonder, a major provider of supply chain software, has disrupted operations for several retailers, including Starbucks and U.K. grocery giants Sainsbury's and Morrisons. The cyberattack, which struck last week, has compromised systems responsible for managing schedules and inventories, prompting these businesses to activate their backup processes.

Starbucks reported that the attack hindered its ability to manage payroll and scheduling across approximately 11,000 company-owned North American stores. Although the company is currently compensating employees based on scheduled hours, discrepancies in actual hours worked are expected, with assurances that adjustments will be made.

Meanwhile, Ford Motor is assessing potential impacts on its operations, given its use of Blue Yonder's technology. On the other hand, Morrisons and Sainsbury's have both resorted to contingency plans to maintain service delivery, with Morrisons noting specific challenges in managing fresh food and produce supplies.

Dutch supermarket conglomerate Ahold Delhaize, which owns Stop & Shop, Food Lion, Hannaford, and other grocery chains, on Nov. 8 reported a “cybersecurity issue” within its U.S. network. The incident caused nearly two weeks of product shortages at Stop & Shop stores across the Northeast U.S.

Owned by Panasonic, Blue Yonder is instrumental in providing software that helps manage various logistical aspects from warehouse operations to transportation and returns for numerous high-profile companies, including Kroger and Walgreens, though these companies have yet to comment on the incident.

As Blue Yonder works on restoring its services, without a clear timeline for resolution, the ripple effects of this attack underscore the vulnerability of global supply chains to cyber threats, particularly as businesses ramp up activities for the holiday season.

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