The computer attack suffered in November by the parent company of the IGA grocer, Empire, has cost the company $25 million so far.
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“Based on available information, Empire estimates that the financial impact on full-year net income for fiscal 2023 will be approximately $25 million, net of insurance recoveries,” Empire wrote in its financial results released yesterday.
Among other things, the attack made online orders impossible for customers, which are still not available in all the places where they were before the incident.
The company only indicated that it was experiencing “computer problems” in a brief press release published in early November and never commented on the situation thereafter.
Empire declared a confidentiality incident to the Commission d’accès à l’information du Québec on November 11.
Payroll issues
Many employees told the Log having struggled with their pay for the weeks after the attack.
Retailers have experienced problems with the delivery of merchandise to the store.
In Quebec, the IGA, IGA Express, Shell, Bonichoix, Tradition, Bonisoir, Voisin and Rachelle Béry stores are all dependent on the Sobeys/Empire system for their orders.
Rising profits
Profits also rose at Empire in its second quarter, which ended Nov. 5.
They reached $189.9 million, whereas they had been $175.4 million at the same time last year.
Sales also increased, from $7.32 billion to $7.64 billion.
In stores open for at least a year, sales jumped 3.9% and 3.1% if gasoline is excluded.