Blue Yonder ransomware attack disrupts UK grocery supply chains ahead of festive period

A major ransomware attack against supply chain firm Blue Yonder has caused significant disruption to British supermarkets just weeks before the Christmas shopping season.

The Arizona-based company, owned by Panasonic, confirmed the cyber incident on 21 November 2024, which has directly impacted warehouse and logistics operations for major UK grocery chains. Morrisons, one of Britain’s largest supermarket groups, was particularly affected.

A Morrisons spokesperson confirmed that the firm had suffered a major outage and that it had reverted to a backup process. The supermarket, which operates nearly 500 stores across the United Kingdom, is working to minimise disruption to its fresh food and produce supply chains.

Sainsbury’s meanwhile said that it had activated contingency plans to manage the system-wide disruption. The attack targeted Blue Yonder’s managed services hosted environment, potentially compromising inventory management and distribution systems crucial to maintaining food supplies during the busy festive period.

The incident comes at a particularly sensitive time for British retailers, with Christmas shopping and potential supply chain pressures already challenging grocery businesses. Blue Yonder, which provides critical software to some of the UK’s largest food retailers, has not yet provided a definitive timeline for system restoration.

The ransomware attack has also caused international disruption, with major US corporations experiencing potential service interruptions. In the US, grocery giants Albertsons and Kroger, along with consumer goods manufacturers Procter & Gamble and Anheuser-Busch, are among the high-profile clients potentially impacted by the Blue Yonder system breach.

“Our investigation remains ongoing, but our priority is to ensure a safe and secure recovery,” Blue Yonder said in a statement. The company is collaborating with external cybersecurity experts to investigate and mitigate the attack’s impact.

While the full extent of the disruption remains unclear, British supermarkets are demonstrating resilience by quickly implementing backup systems. Morrisons reassured customers that they are “working very hard to deliver for our customers across the country”.