Morrisons Closes First 2 Stores in 100-Store Closure Plan; 52 Post Offices at Risk

Morrisons has begun its 100-store closure programme, with the first Morrisons Daily branch in Woodley, Berkshire, already shut and another in Stokesley, North Yorkshire, closed on July 18. The closures are part of a plan to axe loss-making convenience stores acquired through the rescue of McColl's in 2022.

First Closures and Impact on Post Offices

The Crockhamwell Road store in Woodley closed last week, less than two years after opening. Its Post Office also shut, ending around 60 years of mail services from that location. The Post Office is now seeking a nearby retailer for a replacement branch. The Stokesley store, which had operated as a McColl's for decades before conversion to Morrisons Daily, closed on July 18. According to analysis by Better Retailing, at least 52 Post Office branches are expected to cease operations by early October as a result of the closures, though the Post Office is actively seeking new retailers.

Reasons for Closures

Morrisons stated that the affected stores have been unprofitable for years and were part of the McColl's acquisition. Despite remedial actions, performance remained challenged. The company attributed the situation to significant cost increases from government policy choices, including higher minimum wages and last year's national insurance rate hike. A Morrisons spokesman said: “The performance of all company owned stores across our convenience business is subject to continuous review. This process has identified a number of stores, which were part of the McColl’s acquisition, whose performance has been challenged for a number of years and which are loss making, despite remedial action. This situation has been exacerbated in more recent years by significant cost increases resulting from Government policy choices, which have made returning these stores to profitability even more difficult.”

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Job Risks and Future Plans

Hundreds of shop workers are understood to be at risk of redundancy. Morrisons said it is consulting affected staff and will seek to redeploy employees where possible. The company employs around 95,000 staff across 1,700 convenience shops and about 500 supermarkets. Despite the closures, Morrisons stressed it is still spotting opportunities to open hundreds more franchise convenience stores in the coming years, aiming to “improving the quality of our convenience estate and making it stronger overall.”