Morrisons has announced plans to close 100 stores across the UK in the coming months, with loss-making Morrisons Daily convenience outlets among the first to be affected. The supermarket chain, the sixth largest in the UK, has confirmed seven specific sites that will shut, putting hundreds of jobs at risk.
Reasons for Closures
The retailer attributed the closures to rising costs driven by government measures, including increases to the National Living Wage and employer National Insurance contributions. A government spokesperson stated that shutting shops was a commercial matter for Morrisons, though ministers recognised it was a "concerning time" for employees and their families.
Seven Named Sites
Morrisons confirmed the following seven Morrisons Daily stores will close: Fairfax Avenue, Hull; Esk Close, Guisborough; Zetland Road, Loftus; Stokesley High Street, Middlesbrough; Queen Street, Redcar; Middle Street, South Driffield; and Woodthorpe, York. These are among the 100 closures, but the full list has not been released.
Impact on Jobs and Cost Savings
Hundreds of positions have been placed at risk, with consultation ongoing. Morrisons stated it would attempt to secure alternative roles for affected employees. The closures are part of a turnaround strategy targeting £1 billion in cost savings; the company achieved £48 million in savings in the last quarter alone.
Sales Performance
Earlier this month, Morrisons reported total sales rose 1.7% to £4 billion over the 13 weeks to April 26, slowing from a 2.6% rise in the previous quarter. Like-for-like sales growth eased to 2.2% from 2.8%. Despite this, chief executive Rami Baitieh said he was "pleased" by the results, citing an "encouraging start" to the third quarter and optimism from the World Cup and Father's Day.
Future Plans
Despite the closures, Morrisons launched 30 new Morrisons Daily franchise stores in the quarter, with hundreds more planned. Baitieh stated: "In a highly competitive market, we're focusing hard on delivering the best value for customers to give them more reasons to shop at Morrisons."
