Daily Newsletter

19 July 2024

Daily Newsletter

19 July 2024

Global IT outage hits retailers’ POS systems

As IT outages are being reported across the world, retailers’ point-of-sale systems are collapsing, causing havoc for customers and staff.

Claire Jenns July 19 2024

Businesses across the world are grappling with the failure of Microsoft IT systems.

The infamous blue loading screen on Windows PCs is being displayed at retail checkouts, from cafés to department stores.

Microsoft says the "underlying cause" of the mass IT outage has been fixed for its apps, but "residual impact" is continuing to affect some services.

It previously stated it was "investigating an issue affecting Windows devices due to an update from a third-party software platform."

This platform is confirmed as IT security firm CrowdStrike, which is also monitoring the failure of its technology connected to Microsoft.

Airports have been hit hardest, with planes grounded and passengers left stranded across the globe.

At Stansted Airport in London, UK, a spokesperson told the BBC that “some retail payment machine services have been impacted". At Gatwick Airport, coffee chain Starbucks is reportedly only accepting cash.

UK bakery and coffee shop chain Gail's is experiencing similar problems with signs stating it cannot take in-store payments and apologising for the inconvenience to customers.

Grocery retailer Morrisons said it had "some issues" with payment in some stores but these have now been resolved. Other UK retailers reported spikes in tech issues, including Tesco and Sainsbury's, but this has begun to calm.

Retail's reliance on Microsoft

Retail Insight Network recently analysed the role of Microsoft in the retail industry, highlighting its omnipresent influence across retailers’ operations and its global network of 135m managed devices.

The current outage highlights the risks of businesses using a single provider for IT systems, particularly for POS (point-of-sale) systems.

GlobalData’s retail intelligence finds that growth in the POS software market is driven by the increasing adoption of cloud-based solutions and escalating demand for contactless payment methods - precisely the technologies that the current global outage has impacted.

While current evidence suggests that this outage is a system failure rather than a cyberattack, the importance of cybersecurity for retailers remains paramount in an age where technological issues can bring the retail industry to a standstill.

Uncover your next opportunity with expert reports

Steer your business strategy with key data and insights from our latest market research reports and company profiles. Not ready to buy? Start small by downloading a sample report first.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close