Morrisons is reportedly planning to close 100 of its loss-making convenience stores, citing mounting cost pressures attributed to government policy. The convenience outlets earmarked for closure have been unprofitable for several years, according to reports from the Financial Times.
Impact on Staff and Stores
Hundreds of shop workers are understood to be at risk of redundancy as a result of the closures. However, specific details regarding which stores will be affected, the exact number of staff impacted, or the precise government policies causing the pressure were not immediately disclosed by the supermarket chain.
Broader Retail Challenges
This decision comes as many retailers face increasing operational expenses. Key cost drivers include rises in the national minimum wage and last year's increase in national insurance rates. These factors have squeezed margins across the sector, forcing companies to reassess their store portfolios.
Previous Cost-Cutting Measures
The move follows a recent consultation over job cuts at Morrisons' Bradford head office. Additionally, the company has previously closed various cafes, florists, fresh food counters, and some convenience stores as part of ongoing efforts to streamline operations and reduce losses.
Morrisons has not yet issued an official statement regarding the reported closures. The supermarket chain continues to operate hundreds of stores across the UK, but the planned closures signal a significant shift away from the convenience store format that has struggled to compete with rivals.
