UK retailer Morrisons has revealed that it will close a number of company owned convenience stores as part of its plan to reduce financial losses.
The stores that are set to close were part of the McColl’s acquisition, which saw more than 1,100 stores taken over by Morrisons in 2022.
Morrisons employees will reportedly be at risk of redundancy, with a consultation to be held, but the retailer said it would try to find opportunities for employees within Morrisons’ other operations.
The retailer currently has around 1,700 convenience stores, opening more than 120 new franchise stores last year. It said it had a “robust” plan in place for further expansion in 2026, stating that it would open “hundreds more franchise convenience stores in the years ahead”.
A Morrisons spokesperson commented: “We have achieved a lot since acquiring the McColl’s stores in 2022, rebranding and repositioning the business as Morrisons Daily, with significant investment in the estate and an ongoing programme of proactive management to optimise the portfolio.
“The performance of all company owned stores across our convenience business is subject to continuous review. This process has identified a number of stores, which were part of the McColl’s acquisition, whose performance has been challenged for a number of years and which are loss-making, despite remedial action. This situation has been exacerbated in more recent years by significant cost increases resulting from Government policy choices (NIC and NLW), which have made returning these stores to profitability even more difficult.
“Having completed the review, we are now proposing to take the tough but necessary decision to close a number of these stores over the next few months.”
“We will work hard to mitigate the impact on customers, continuing to serve them through other nearby stores and online.”
The Morrisons spokesperson continued: “Regrettably, the proposal means that some of our convenience store colleagues will now be at risk of redundancy and a consultation will commence shortly. We understand this will be difficult news for them and we will be providing these colleagues with all necessary support.
“This will include finding other opportunities for impacted colleagues elsewhere in the business wherever we can, in our supermarket, logistics and manufacturing operations and we have a strong track record of achieving this historically. We will also work hard to mitigate the impact on customers, continuing to serve them through other nearby stores and online.
“The combination of the proposed closure of loss-making stores and the continued addition of attractive new franchise openings will enable us to concentrate on those stores that work best for customers, improving the quality of our convenience estate and making it stronger overall.”
