Morrisons is closing more than 100 stores across the UK, with seven locations now officially confirmed as part of the first wave of shutdowns.
The closures will largely affect the smaller Morrisons Daily convenience format, many of which joined the group following the supermarket’s acquisition of the McColl’s chain back in 2022. There are currently more than 1,600 Morrisons Daily outlets operating across the country, and while the confirmed closures represent a fraction of that number, more are expected to follow in the coming months.
The news comes after the supermarket reported a slowdown in sales growth amid highly competitive market conditions. The UK’s sixth largest supermarket is now targeting £1 billion in savings as part of a longer-term budget strategy, and the convenience store closures form a significant part of that plan.
Rising costs have played a big role in the decision.
Increases to the National Living Wage and changes to employer National Insurance contributions have both added considerably to the cost base across the retail sector, and Morrisons has been open about the fact that these pressures have contributed to the situation. For stores that are already struggling to break even, additional cost increases can tip the balance quickly from difficult to unworkable.
The wider competitive landscape isn’t making things easier, either. Discounters continue to grow their share of grocery spend, and margins across the convenience sector are under pressure industry-wide. A network of stores inherited from an acquisition and already carrying performance problems is a hard thing to sustain in that environment, and cutting those losses now rather than continuing to absorb them reflects a straightforward business calculation.
The McColl’s takeover is where this started.
When Morrisons acquired McColl’s in 2022, it inherited a large number of convenience stores that came with existing performance challenges. Some of those stores have never fully recovered, and the review that led to these closures specifically identified sites from that acquisition as the most troubled. The supermarket described the decision as tough but necessary, acknowledging that remedial action had been taken at these stores without sufficient improvement in results.
The broader convenience network still has expansion plans attached to it, which means Morrisons isn’t stepping back from the smaller store format entirely. The closures are being framed as cutting the underperforming end of the estate while continuing to invest where the numbers stack up. That distinction matters for anyone wondering whether this signals a wider retreat from the convenience market.
These are the seven stores confirmed so far.
Source: Unsplash The locations named in the first round of closures are spread largely across Yorkshire and the North East of England. The confirmed stores are 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.
All seven are Morrisons Daily branches. The retailer has indicated that stores being prioritised for closure are those that have struggled with performance for a number of years and are currently loss-making despite previous efforts to improve their position. Many of these sites were originally part of the McColl’s estate before Morrisons took over the chain.
Hundreds of jobs are at risk as consultations get under way.
With more than 100 closures expected across the estate, the impact on employment is considerable. Consultations are currently underway with affected staff, and Morrisons has said that where possible employees may be offered alternative roles at other locations within the group. That won’t be a realistic option for everyone, particularly those in areas where the nearest remaining branch isn’t easily accessible, but it does mean that not every closure will automatically result in a redundancy.
The full workforce impact won’t be clear until the complete list of closures is confirmed. For staff at Morrisons Daily stores not yet named, the uncertainty is significant, and the ongoing consultation process means the number of confirmed closures is expected to grow beyond the current seven in the weeks ahead.
The full list of closures hasn’t been released yet.
The seven stores named so far are part of the first wave, with more expected to be confirmed as the review continues. Morrisons has indicated that the performance of all convenience stores remains under continuous assessment, which suggests the process is ongoing rather than concluded. Anyone with a Morrisons Daily nearby who wants to know whether their local branch is at risk will need to keep an eye on further announcements from the retailer as they come.
Despite the scale of the cuts, Morrisons has maintained that it intends to grow its convenience network over the longer term. The closures are being positioned as a targeted reduction of the weakest-performing sites rather than an exit from the format, and the retailer says it remains committed to expanding where conditions allow. How that plays out will depend on how well the business manages the current cost pressures and whether trading conditions in the convenience sector improve over the coming year.
