Retailers in Australia are being warned by Australian Federal Government Cyber security experts to be extra careful, after the past couple of months have seen a series of devastating cyberattacks on UK household names, such as Marks & Spencer, Harrods and the Co-op.
When it comes to retail, trust in a brand is everything. When sensitive data is compromised, customer confidence suffers as a result, leading to fewer sales, particularly in the digital store.
So, retailers need to look more closely at their back-end systems to determine where the vulnerabilities are and how best to improve their resilience.
Outdated legacy systems
Many still rely on slow, inflexible systems that lack the real-time visibility needed to respond effectively to crises. These outdated tech stacks create inefficiencies, security risks, and integration challenges, and often lead to siloed, poor quality data, making it difficult to maintain a unified view of customers, stock levels, and operations.
This lack of agility makes it harder to respond to cyber threats, system failures, and evolving consumer demands. Furthermore, the rise of AI and omnichannel retailing has exposed the limitations of legacy infrastructure, as older systems are often incompatible with newer technologies.
New supply chain solutions in the technology stack make it very difficult for hackers to reconcile customer & financial data during a security breach. Plus encryption at all levels and fragmented data across multiple databases and services reduce the risk of extracting sensitive data.
Every retailer is a target
Smaller businesses often lack the budget for robust cyber protection and dedicated cybersecurity teams, leaving them exposed to cyber threats because they can’t always invest in the latest technology or cybersecurity measures. Many rely on third-party payment processors and cloud-based systems, which can introduce additional risks.
At the same time, larger organisations are high-value targets with complex, interconnected systems, processing vast sums of data and payments, that are often running on aging legacy infrastructure. Online retailers also face heightened risks due to their reliance on digital transactions. Phishing attacks, credential stuffing, and ransomware are common threats, especially for businesses with weak cybersecurity measures.
Inventory visibility is key
Inventory visibility is often the first casualty in an outage, risking overselling, disappointing customers, and damaging brand trust. Many retailers rely on automated inventory systems so a cyber-attack can halt stock replenishment, leading to empty shelves and supply chain bottlenecks.
If you don’t have real-time inventory visibility, you’re flying blind. During an outage, you can’t see what’s available, where it is, or how to reroute orders. This leads to missed sales, broken promises to customers and a scramble to recover once systems are back online. It’s a recipe for lost revenue and damaged reputation.
Building real operational resilience
Flexible operations and smarter decision-making are essential in the face of an attack. Retailers must identify their pressure points most vulnerable to attack and assess priorities now to avoid being caught off guard. Essential technologies now include real-time Order Management Systems and cloud-native platforms that give you accurate, up to the minute inventory data across all channels. Distributed Order Management (DOM) and AI-driven tools are also becoming critical for retailers who want to stay resilient and responsive.
DOM, in particular, is the unsung hero of resilience, providing retailers with the ability to access real-time inventory visibility across every store, warehouse and online channel; route and fulfil orders dynamically across multiple channels; and provide consistent customer experiences across digital and physical touchpoints.
It is inevitable that retailers will be affected by cyber-attacks; technology can provide solutions though: a state-of-the-art DOM platform enables retailers to pivot instantly, both physically and digitally, prioritising local fulfilment, promoting in-store collection and other measures to protect sales and revenue.
A new era
We’re in a new era where agility builds trust. Customers choose brands that safeguard their data, meet their needs, and consistently deliver – across any channel. For Australian retailers, cybersecurity is non-negotiable, but so is investing in the technology that enables adaptability and confident service. A scalable, secure DOM system ensures that even in turbulent times, operations remain seamless, trust stays intact, and sales aren’t lost. Because in retail today, success isn’t just about transactions – it’s about protecting the relationships behind every purchase.
Invest in technology that gives you real-time visibility and control, especially over your inventory. Embrace cloud-native, composable solutions that can adapt as threats evolve. And remember, resilience isn’t just about technology. It’s about smarter decision-making, building flexibility into your operations, and being ready to pivot when the unexpected hits. Then you’ll be ready for the next wave of cyberattacks.
Jamie Cairns is chief growth officer at Fluent Commerce.