Morrisons, the supermarket chain, has announced plans to close 52 cafes and 17 convenience stores in a move that could result in hundreds of job losses. The company will also be shutting down various in-store services, such as meat and fish counters, pharmacies, and market kitchens, as part of its efforts to reallocate funds to other areas of the business. These changes are expected to be implemented over the next few months.
The decision to make these cuts comes as Morrisons faces increasing competition from discount retailers, with Aldi recently surpassing the chain to become the fourth largest supermarket in the UK. While Morrisons stated that most affected employees would be relocated within the company, approximately 365 workers are at risk of redundancy. The closures will mostly impact Morrisons Daily convenience stores, which operate for extended hours.
In addition to the cafes and convenience stores, Morrisons will be closing 13 florists, 35 meat counters, 35 fish counters, and four pharmacies. The company, which currently employs 95,000 individuals across its 500 supermarkets and 1,600 Morrisons Daily stores, aims to focus its investments on areas that customers value most. According to CEO Rami Baitiéh, these changes are crucial for the company’s growth and renewal amidst fierce competition in the market.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted that Morrisons is adapting to the price-sensitive landscape by streamlining services that are viewed as unnecessary luxuries. With Aldi and Lidl proving to be tough competitors, Morrisons is making strategic adjustments to enhance its value proposition. The supermarket chain aims to optimize its resources and fortify its position in the market during a period of intense competition
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