High street shoppers have been dealt a devastating blow as Morrisons, a major UK supermarket, prepares to axe 100 stores next month. The retail titan confirmed the massive cull will primarily target its smaller Morrisons Daily branches, leaving local communities reeling.
Reasons for Closure
Morrisons stated: "The performance of all company-owned stores across our convenience business is subject to continuous review. Having completed the review, we are now proposing to take the tough but necessary decision to close a number of these stores over the next few months."
"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."
Last month, the firm revealed that "significant cost increases" resulting from "government policy choices" were amongst the reasons for the closures, reports the Express.
Impact on Post Offices
The shutdown of the Morrisons outlets will result in the closure of local Post Offices, a decision that has angered residents. The company has said it would "welcome applications from nearby retailers looking to host a Post Office inside their store."
Background on McColl's Acquisition
The supermarket previously said the shops, which were initially acquired as part of a £190 million rescue package for McColl's in 2022, had been losing money for an extended period.
Staff and Future Plans
Staff impacted by the closures may be offered alternative positions, a Morrisons spokesperson said at the time. Despite the closures, the company's expansion blueprint still involves launching additional Morrisons Daily convenience outlets.
Chief Executive Rami Baitiéh is understood to be targeting the launch of hundreds more over the next few years. The proposals reportedly envisage the bulk of the new branches being operated as franchises, rather than under direct ownership by the supermarket group.
