Supermarket chain Morrisons has announced plans to close 52 in-store cafés and 17 Morrisons Daily convenience stores, putting hundreds of jobs at risk in the coming months. The decision is part of a broader strategy to reduce costs and refocus investment on areas deemed more valuable to customers, according to a report by BBC News.
Financial Pressures and Strategic Refocusing
Morrisons, the UK’s fifth-largest supermarket, has been under pressure since Aldi overtook it in 2022 to become the country’s fourth-largest grocery chain. The rise of discount supermarkets has intensified competition in an increasingly price-sensitive market, prompting Morrisons to reassess its cost structure and retail model.
In a statement, chief executive Rami Baitiéh said the closures are a necessary step toward “renewing and reinvigorating” the company. Resources will be redirected towards areas that can contribute more effectively to growth and customer value.
Services Affected and Job Implications
The closures extend beyond cafés and convenience stores. Morrisons will also shut:
- 13 florists
- 35 meat counters
- 35 fish counters
- 4 in-store pharmacies
- All 18 market kitchens, which offer ready-to-eat meals
In total, approximately 365 employees face redundancy, although the company has indicated that most affected staff are expected to be redeployed within other parts of the business.
Locations Impacted
The in-store cafés marked for closure span locations across London, Leeds, Glasgow, Bristol, and other towns and cities across the UK. The Morrisons Daily convenience stores affected include branches in Exeter, Poole, Bath, Tonbridge, and Peebles, among others.
These stores, known for their extended opening hours, have become less central to the company’s evolving retail strategy.
Competitive Landscape
According to Susannah Streeter, head of money and markets at Hargreaves Lansdown, Morrisons is taking steps to align with market realities:
“The supermarket chain is closing services seen as nice-to-have, but not essential, and scaling back its convenience footprint as it readies for a round of cost-cutting from rivals.”
With competitors like Lidl and Aldi maintaining strong momentum through aggressive pricing and operational efficiency, traditional supermarkets such as Morrisons must adapt quickly to maintain relevance and competitiveness.
