Morrisons Planning to Close 100 Stores in Next Few Months

Industry veteran’s take on Morrisons’ store closures

Morrisons, the UK supermarket giant, is facing another round of tough decisions. The company is planning to shutter around 100 stores over the next few months. This move comes after a series of recent closures and job cuts that have left many wondering if this retailer can weather the storm.

Loss-making stores and acquisitions

The affected convenience stores, which were acquired through Morrisons’ McColls deal in 2022, have been struggling for some time. According to the company’s statement, these stores had not shown any signs of profitability despite efforts to revitalize them. This decision is a tough but necessary step, according to Morrisons.

Government policy and increased costs

The current situation has been exacerbated by significant cost increases resulting from government policy choices. Morrisons cites the national living wage rise and National Insurance contributions as major contributors to their financial woes. These changes have made it even harder for them to turn a profit, especially in loss-making stores.

Impact on staff

The closures will put hundreds of jobs at risk, including those at Morrisons’ headquarters in Bradford. A spokesperson from the company stated that they would try to find other opportunities for affected staff but acknowledged that many might face redundancy. This decision underscores the ongoing challenges faced by retailers in navigating rising costs and maintaining profitability.

You might think this is new, but… it’s not.

Many retailers have been grappling with similar issues due to government policies and inflationary pressures. Morrisons’ plan to close more stores highlights the need for a broader industry-wide discussion on how to balance regulatory changes with business sustainability.