Morrisons is reportedly planning to close 100 lossmaking convenience stores as the supermarket chain grapples with cost pressures it claims have been exacerbated by "Government policy". According to the Financial Times, the shops earmarked for closure have been unprofitable for several years.
Details of the Planned Closures
The specific stores to be closed and the number of staff potentially affected have not been disclosed. Morrisons has not yet responded to requests for comment. The supermarket operates approximately 1,700 convenience stores and 500 supermarkets, employing around 95,000 people.
Context of Rising Costs
While the particular government policies were not detailed, the announcement comes at a time when many retailers are facing increasing business costs, including higher minimum wages and a rise in national insurance rates implemented last year.
Last month, Morrisons informed staff of a consultation over job cuts at its head office in Bradford, impacting less than 10% of roles at that site. The company has also recently closed some cafes, convenience stores, florists, and fresh food counters as part of a broader restructuring that has resulted in hundreds of job losses.
