Morrisons has announced the closure of 100 branches, primarily loss-making convenience stores under its Morrisons Daily brand, acquired through the McColls deal. The supermarket chain cited cost increases from government policies, including rises in the National Living Wage and employer National Insurance contributions, as the reason for the closures.
Hundreds of jobs are at risk, with a consultation process still ongoing. Morrisons stated it would try to find alternative roles for affected staff. The government described the decision as commercial but acknowledged it was a concerning time for employees.
Seven stores have been confirmed for closure: Fairfax Avenue, Hull; Esk Close, Guisborough; Zetland Road, Loftus; Stokesley High Street, Middlesbrough; Queen Street, Redcar; Middle Street, South Driffield; and Woodthorpe in York. The full list of 100 closures has not been published.
The closures come as Morrisons reported a slowdown in sales growth, with total sales rising 1.7% to £4bn in the 13 weeks to April 26, compared to 2.6% in the previous quarter. Like-for-like sales growth slowed to 2.2% from 2.8%. Despite this, CEO Rami Baitieh expressed satisfaction with the performance and highlighted an encouraging start to the third quarter, boosted by events like the World Cup and Father's Day.
Morrisons, now the UK's sixth-largest supermarket, aims to save £1bn through a long-term strategy. It secured £48m in cost savings last quarter and plans to open hundreds more Morrisons Daily franchise stores despite the closures.
