Morrisons is set to close 100 of its convenience stores across the UK in 2026, with seven locations already confirmed. The supermarket giant announced in May that underperforming Morrisons Daily branches, acquired through its takeover of McColls, would be shut. The closures are attributed to soaring costs from government policies, including increases in the National Living Wage and employer National Insurance contributions.
Confirmed Store Closures
Seven stores have been confirmed for closure: Fairfax Avenue in Hull; Esk Close in Guisborough; Zetland Road in Loftus; Stokesley High Street in Middlesbrough; Queen Street in Redcar; Middle Street in South Driffield; and Woodthorpe in York. Hundreds of jobs are at risk, and consultations with affected staff are ongoing. Morrisons has pledged to seek alternative positions for impacted employees.
Financial Context and Market Performance
Morrisons reported a slowdown in sales growth in its most recent quarter, with overall sales rising 1.7% to £4 billion in the 13 weeks ending April 26, down from 2.6% growth in the prior quarter. Like-for-like sales eased to 2.2% from 2.8%. Despite this, CEO Rami Baitieh expressed optimism, citing an encouraging start to the third quarter and expected boosts from the World Cup and Father's Day.
The chain has set a £1 billion savings target as part of a long-term turnaround plan. In the latest quarter, it achieved £48 million in cost reductions. Closing unprofitable convenience stores is a key part of this initiative. However, Morrisons also opened 30 new Morrisons Daily franchise outlets in the quarter and plans to open hundreds more in coming years.
Government Response
The government stated that the closures are a commercial decision for Morrisons, though ministers acknowledged it is a concerning time for employees and their families. Morrisons currently ranks as the UK's sixth-largest supermarket chain, having lost market share in recent years.
