Morrisons is set to shut 100 stores across the UK, a move that will impact hundreds of employees and change shopping options in affected communities. The closures involve company-owned Morrisons Daily locations, many of which were previously McColl’s stores acquired in 2022.
Stores Impacted and Workforce Implications
The stores targeted for closure are reportedly the least profitable and most financially challenged within the convenience portfolio. Staff at these locations will be consulted, and the company is attempting to relocate employees where possible. Despite these efforts, the move represents a significant reduction in workforce in the convenience segment.
The closures mark the latest in a series of changes at Morrisons, following the departure of the convenience director earlier this year and an 8% reduction in headquarters staff. The supermarket has also merged its convenience and supermarket buying teams to streamline operations.
Convenience Growth Strategy Continues
Despite the closures, Morrisons maintains its commitment to expanding its convenience business. The company aims to open hundreds of new Morrisons Daily franchise stores in the coming years. The focus is shifting toward profitable locations and strategic franchise growth, rather than maintaining underperforming company-owned outlets.
Investment in new sites is expected to offset losses from stores that have struggled to generate consistent revenue. The strategy also aims to strengthen the overall convenience estate, concentrating resources on stores that deliver strong performance and better serve customers.
Financial Pressures and Operational Challenges for Morrisons
The decision to close stores reflects broader financial pressures, including rising costs such as National Insurance contributions and the National Living Wage. Some locations have been loss-making for years, and the combination of operational costs and challenging trading conditions has made profitability increasingly difficult.
By closing these stores, Morrisons can optimize its portfolio, focusing on locations that perform well while continuing to grow its franchise network. This approach allows the company to balance short-term losses with long-term growth opportunities.
Implications for Customers and Communities
Shoppers in areas affected by closures may have fewer Morrisons Daily locations to choose from. The company plans to mitigate the impact by maintaining service through nearby stores and online options, reports The Sun. At the same time, franchise growth is expected to increase convenience coverage in other areas, creating a more sustainable and strategically aligned network.
The closures and wider restructuring highlight the challenge of running a large convenience network in a competitive retail market. By focusing on profitable locations and expanding franchises, Morrisons hopes to maintain growth, improve efficiency, and strengthen customer service while supporting employees wherever possible.
