Morrisons Plans to Shut Unprofitable Daily Stores, Putting Hundreds of Jobs at Risk
Morrisons, one of Britain’s largest supermarket chains, is preparing to close approximately 100 Morrisons Daily convenience stores across the UK, with staff briefed on Wednesday 21 May about proposals that could put hundreds of jobs at risk.
Underperforming McColl’s Sites in the Firing Line
All branches earmarked for closure are former McColl’s outlets, acquired by Morrisons in 2022 after the chain outbid rival Asda for the convenience retailer. The company has identified these sites as unprofitable and described them as the “most challenged” parts of its portfolio, according to trade publication The Grocer.
Closures are expected to proceed over the coming months. Morrisons has stated it will attempt to redeploy affected employees elsewhere within the business “where possible.”
Franchise Model to Drive Future Expansion
Despite the retreats, Chief Executive Rami Baitiéh is pursuing an ambitious expansion of the Morrisons Daily format, with hundreds of new convenience outlets targeted over the next several years. The bulk of new openings are expected to operate under a franchise model, reducing the supermarket’s direct capital exposure.
Convenience operations have recently been brought under Morrisons’ retail division, overseen by Group Retail Director Martin Dawson, following the departure of group wholesale and convenience director Matt Heslop during a broader internal restructure.
Wider Cost Pressures Mount
The store closures form part of a sustained effort to stabilise Morrisons’ finances. The group has been contending with elevated debt-servicing costs and a competitive trading environment for several years.
In April, the company announced proposals to cut more than 200 head office positions at its Hilmore House headquarters in Bradford — approximately 8% of its central workforce — as part of wider efficiency measures.
Separately, Morrisons confirmed this week that it will raise wages for store workers from 20 July, under an agreement backed by retail trade union USDAW.