Morrisons to close 17 shops, 52 in-store cafes

(Sharecast News) - Morrisons announced a major restructuring plan on Monday that will see the closure of 17 convenience stores, 52 in-store cafés, and a range of other in-store services, putting 365 jobs at risk across the UK.

The supermarket chain - the UK's fifth largest after Tesco, J Sainsbury, Asda and Aldi - confirmed it would shut all 18 of its Market Kitchen hot food counters, 13 florists, 35 meat counters, 35 fish counters, and four pharmacies.

It came as part of a wider cost-cutting strategy under chief executive Rami Baitiéh, who said the move was essential to redirect investment toward areas that deliver greater value for customers and support long-term growth.

The closures come as Morrisons - owned by US private equity giant Clayton, Dubilier & Rice after delisting in 2021 - grappled with mounting operational pressures, including inflation, rising wages, and the upcoming increase in National Insurance contributions.

It cited "significant cost increases" as a key factor behind the cuts.

According to reports, the National Insurance hike alone could add around £75m to its annual costs.

The 17 affected stores are all Morrisons Daily convenience branches, acquired during the company's 2022 takeover of McColl's.

Locations marked for closure included sites in Bath, Birmingham, Woking, Exeter, and Poole.

Meanwhile, the cafés set to close were spread across the UK, affecting branches in major cities such as London, Leeds, Portsmouth, and Glasgow.

Despite the reductions, Morrisons said the majority of impacted employees were expected to be redeployed to other roles within the business.

Baitiéh emphasised the company's commitment to supporting affected staff, stating the changes were not taken lightly.

While describing Morrisons' traditional cafés and Market Street concept as important parts of the brand, Baitiéh said certain underperforming sites had become "simply uneconomic".

He added that in some stores, the space vacated by closed services could be repurposed with third-party partnerships offering more relevant specialist services.

Reporting by Josh White for Sharecast.com.