Morrisons is planning to close 100 stores over the coming months, a move impacting a portion of its Morrisons Daily estate.
The supermarket blamed the closures on rising operational costs and unfavorable government policy changes, though it maintains a robust expansion plan to open hundreds more franchise stores in the coming years.
The supermarket chain said on Thursday (May 21) that it will close the 100 unprofitable Morrisons Daily convenience stores, in a move which could affect hundreds of jobs.
"This situation has been exacerbated in more recent years by significant cost increases resulting from government policy choices, which have made returning these stores to profitability even more difficult,” it said.
Morrisons has faced steep debt costs following its £7bn takeover by private equity firm Clayton Dubilier & Rice (CD&R) in 2021.
The group blamed the government’s tax and regulation policy for the closures, though the Financial Times reported the affected stores had been unprofitable for years.The planned closures come after Morrisons said last year it was closing 52 cafes and 17 convenience stores, putting hundreds of jobs at risk.
It also comes after it revealed last month that about 200 jobs were at risk at its Bradford headquarters.
The supermarket chain said its proposal to take the "tough but necessary decision" to close more Morrisons Daily stores meant more staff would be at risk of redundancy and a consultation would start shortly. It did not say how many jobs were potentially affected.
The chain has around 1,700 Morrisons Daily convenience stores and opened more than 120 franchise stores last year. It said it had a "robust expansion plan" for 2026, and saw the opportunity to open more franchise sites rather than company-operated shops.
Morrisons chief executive Rami Baitiéh has previously warned that the supermarket sector has been struck by an 'avalanche of costs', with retailers struggling under the weight of higher National Insurance contributions, increases to the minimum wage and new packaging recycling levies.
Morrisons currently holds an 8.4% share of the UK grocery market and has dropped out of the traditional "Big Four" supermarkets. The closures arrive despite Morrisons having pursued an expansion into convenience retail in recent years.