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Japan Retailers Halt Online Sales on Supplier Cyber Attack

Japan’s retail industry faced a major disruption after a large-scale cyberattack hit one of its key suppliers, forcing several major retailers to suspend online sales. The incident highlights the growing risks companies face from cyber threats targeting their digital supply chains.

The attack targeted Askul Corporation, a leading Japanese logistics and e-commerce service provider. Askul handles order processing and delivery operations for multiple retailers across Japan. The company reported that its systems were hit by a ransomware attack, resulting in a complete shutdown of its online order and shipping operations. The suspension left many partner retailers unable to process or fulfill online purchases.

One of the most affected companies was Muji, a well-known Japanese retailer operated by Ryohin Keikaku. Muji announced that it had halted all online sales within Japan but reassured customers that its physical stores would remain open as usual. The company stated that the outage was caused by the disruption at Askul, which manages part of its online logistics. Other major retailers such as Loft and Sogo & Seibu also reported interruptions to their e-commerce platforms.

The sudden halt in online sales has caused widespread inconvenience for customers and financial uncertainty for the affected retailers. Many shoppers were unable to place or track orders, and some businesses warned of potential delays even after operations resume. Analysts believe that if the disruption continues, it could impact quarterly sales figures, particularly as retailers prepare for the upcoming holiday season.

The incident has once again drawn attention to the increasing threat of ransomware attacks in Japan’s corporate sector. Ransomware is a type of cyberattack where hackers lock or encrypt systems and demand payment to restore access. In Askul’s case, the company has not yet disclosed whether any customer data was stolen or if ransom demands have been made. Investigations are underway to determine the full extent of the damage.

Cybersecurity experts warn that the attack on Askul exposes a critical vulnerability in Japan’s retail ecosystem. Many businesses depend on shared logistics and online service providers to manage digital sales, making them highly interconnected. When one supplier is compromised, the ripple effect can paralyze entire networks of retailers, suppliers, and customers.

The Japanese government has expressed concern about the growing frequency of such incidents. Authorities are urging companies to strengthen cybersecurity defenses and conduct regular risk assessments on their partners and vendors. Industry leaders have also called for greater investment in secure cloud systems and stronger incident response frameworks to minimize future damage.

For now, Askul and its partners are working to restore systems and resume operations. However, the event serves as a wake-up call for Japan’s retail and logistics sectors. As online sales become increasingly important, companies must treat cybersecurity as a fundamental part of their business strategy rather than an afterthought.

This cyberattack is a reminder that even one breach can disrupt thousands of businesses and consumers. Japan’s retail industry now faces the urgent task of rebuilding trust, securing its systems, and ensuring that such a large-scale digital shutdown does not happen again.

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