Net sales at TJX were up 9 percent in the second quarter compared to the same period last year but net income dropped considerably - from $139 million to $59 million - because of costs associated with the massive data breach at the discount retail chain.
Tuesday's filing with the federal Securities and Exchange Commission certainly lent credibility to studies that have shown how much security breaches can cost companies.
It's true. There are real costs associated with notifying victims and don't forget the lost productivity that goes along with that.
Customer turnover is supposed to be another cost. Obviously that's not happening here. SALES ARE UP!!!
Now, that means either everyone is paying cash or, as one analyst told me, customers are overlooking the shoddy security posture of TJX in place of that bargain blouse at Marshall's or T.J. Maxx.
It seems, at least in the case of TJX, a major compromise doesn't necessarily mean customers are going to abandon ship. That might not be the case with banks or other financial institutions.
But I guarantee you one thing: Had sales plummeted following the breach, retailers across the board would be scrambling a lot faster to patch their vulnerabilities than even PCI is demanding.
Tuesday's filing with the federal Securities and Exchange Commission certainly lent credibility to studies that have shown how much security breaches can cost companies.
It's true. There are real costs associated with notifying victims and don't forget the lost productivity that goes along with that.
Customer turnover is supposed to be another cost. Obviously that's not happening here. SALES ARE UP!!!
Now, that means either everyone is paying cash or, as one analyst told me, customers are overlooking the shoddy security posture of TJX in place of that bargain blouse at Marshall's or T.J. Maxx.
It seems, at least in the case of TJX, a major compromise doesn't necessarily mean customers are going to abandon ship. That might not be the case with banks or other financial institutions.
But I guarantee you one thing: Had sales plummeted following the breach, retailers across the board would be scrambling a lot faster to patch their vulnerabilities than even PCI is demanding.
