Morrisons has announced the closure of 100 convenience stores across the UK, with seven sites already identified. The affected outlets are part of the Morrisons Daily chain acquired through the takeover of McColls. The retailer cited rising costs from Government measures, including increases to the National Living Wage and employer National Insurance contributions, as the reason for the closures.
The seven stores confirmed for closure are located in Fairfax Avenue, Hull; Esk Close, Guisborough; Zetland Road, Loftus; Stokesley High Street, Middlesbrough; Queen Street, Redcar; Middle Street, South Driffield; and Woodthorpe in York. Hundreds of jobs are at risk, with consultations ongoing. Morrisons stated it will attempt to find alternative roles for affected employees.
Morrisons chief executive Rami Baitieh described the decision as “tough” but necessary. The closures are part of a broader turnaround strategy aiming to save £1 billion. In the last quarter, the retailer achieved £48 million in cost savings. Despite the shutdowns, Morrisons opened 30 new Morrisons Daily franchise stores in the same period, with plans for hundreds more.
The supermarket reported a slowdown in sales growth for the 13 weeks to April 26, with total sales rising 1.7% to £4 billion, compared to 2.6% in the previous quarter. Like-for-like sales growth eased to 2.2% from 2.8%. Baitieh expressed optimism for the third quarter, citing potential boosts from the World Cup and Father’s Day.
Morrisons currently ranks as the UK’s sixth largest supermarket, having lost market share in recent years. The Government stated that the closures are a commercial matter for Morrisons, though it acknowledged the “concerning time” for employees and their families.
