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Morrisons has announced plans to shut down 100 of its convenience stores in the near future, attributing this decision to rising operational costs driven by government policy changes. These stores, acquired through its purchase of McColls in 2022, have reportedly been unprofitable for a significant period.
The company highlighted that increases in expenses, including rises in the national living wage and National Insurance contributions, have made it increasingly challenging to return these outlets to profitability. Morrisons described the decision to close stores as difficult but necessary and indicated that this would put more staff at risk of redundancy, with consultations set to begin soon. While the precise number of jobs impacted has not been disclosed, it is believed that hundreds of employees may be affected.
Morrisons operates approximately 1,700 Morrisons Daily convenience stores and launched over 120 franchise locations last year. The closures will target stores showing prolonged underperformance across the UK. Despite these challenges, the company expressed confidence in its “robust expansion plan” for 2026 and plans to open many more franchise outlets in the coming years. A spokesperson for Morrisons also mentioned efforts to provide alternative opportunities for employees affected by the store closures.
From the government’s perspective, closures are considered a commercial decision by Morrisons. A government representative acknowledged the difficulties faced by workers and their families during such times and pointed out the availability of support services, including impartial advice from Acas on employment rights and workplace practices. Retailers have generally raised concerns over additional costs incurred since April last year, citing increased employer National Insurance, higher minimum wages, and charges under the Extended Producer Responsibility programme, which recoups packaging recycling costs. Meanwhile, inflation pressures remain elevated, with food prices rising at a rate exceeding overall inflation. Industry leaders have criticized government expectations on price caps, arguing that such policies contribute to the inflationary environment
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