Workers across Morrisons’ convenience estate have been told they must become more flexible as the retailer seeks to manage sharply rising labour costs.
Managers at Morrisons Daily stores have been instructed to hold so-called “flexibility conversations” with shop-floor colleagues following changes to the supermarket’s internal labour model. Staff may be asked to alter working hours, cover weekends, work across multiple nearby stores or take on additional responsibilities.
The business also wants more employees to become multi-skilled, including operating in-store Post Offices alongside tills and general grocery duties.
An internal document seen by national media states that “reasonable changes” could include asking colleagues to adjust working days or relocate to another store “within a closer or very similar distance” to their usual place of work.
It warns managers that discussions may be “tricky to navigate” and “very emotive”, particularly where long-standing working arrangements are in place.
The memo adds that while some existing arrangements may have been agreed previously as reasonable adjustments, they may “not be fit for purpose now” given how the business has evolved.
In the document, Morrisons insists the flexibility drive is not about reducing staff numbers but about “matching staffing levels to actual demand”. It points to structural changes in stores, including fewer cash transactions and the end of newspaper deliveries.
The move comes as the supermarket attempts to remove £1bn of costs from its operations by October as part of a turnaround led by chief executive Rami Baitiéh, who took the helm in late 2023.
Labour costs have increased significantly for large employers since April following higher employer National Insurance contributions and a lowered payment threshold, alongside a 6.7 per cent rise in the National Living Wage. The NIC changes alone are estimated to add around £75m a year to Morrisons’ cost base.
Although best known for its supermarkets, Morrisons has become a significant convenience player since acquiring more than 1,000 stores from collapsed retailer McColl’s in 2022 and converting them to Morrisons Daily. Around 700 additional stores now operate under the brand on a franchise basis.
Convenience remains central to Baitiéh’s growth plans. The retailer has previously said it aims to add up to 250 further Morrisons Daily stores by franchising to existing independent retailers, allowing it to expand its reach without the cost of opening and fitting out new company-owned sites.