UK supermarket chain Morrisons has announced the closure of 100 convenience stores, blaming sustained financial losses and mounting costs linked to government policy decisions.
The stores earmarked for closure form part of the Morrisons Daily convenience estate and were originally brought into the business when Morrisons acquired McColls in 2022.
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According to a BBC report, the retailer said the stores had been loss-making for a long time, with trading worsening because of “significant cost increases resulting from government policy choices” — specifically, increases to the national living wage and employer National Insurance contributions.
Morrisons described the decision as “tough but necessary”, with hundreds of jobs now understood to be at risk over the coming months.
The precise number of roles affected has not been confirmed.
A consultation process is expected to begin imminently, and a company spokesperson told the BBC that Morrisons would look to identify alternative positions within the business for affected employees.
The latest announcement follows a run of restructuring activity.
Last year, the chain shut 52 cafes and 17 convenience stores. Furthermore, it revealed that around 200 posts at its Bradford head office were at risk of redundancy last month.
Morrisons said it nonetheless retains an expansion plan for this year, with hundreds of additional franchise locations expected to open in the coming years.
The retailer currently operates around 1,700 Morrisons Daily convenience stores and opened more than 120 franchise sites last year.
The closures reflect broader pressures bearing down on UK retailers since April last year, when higher employer National Insurance contributions and increased minimum wage obligations took effect.
Food and drink businesses have faced additional charges under the Extended Producer Responsibility programme, which funds the recovery of packaging recycling costs.
UK food inflation reached 3% in April, outpacing the overall inflation rate of 2.8%.
