Morrisons To Shut Down 100 Stores Amid Rising Operating Costs
British supermarket giant Morrisons has announced plans to close 100 stores across the UK over the coming months as the company battles rising operational costs and underperforming outlets.
The retailer said the affected convenience stores, many of which were acquired through its takeover of McColl’s in 2022, have struggled financially for years despite efforts to improve performance.
According to Morrisons, increasing business expenses linked to government economic policies have made it even harder for the stores to return to profitability.
The company specifically pointed to higher National Insurance contributions and increases in the national living wage as key factors driving up operating costs.
The latest move follows a similar restructuring effort announced last year, when Morrisons revealed plans to close 52 cafés and 17 convenience stores, putting hundreds of jobs at risk. Earlier this year, the supermarket chain also disclosed that about 200 positions could be affected at its Bradford headquarters.
While Morrisons has not yet confirmed how many employees could lose their jobs in the latest round of closures, reports indicate that hundreds of roles may be impacted. The company said consultations with affected workers would begin shortly and added that it would explore alternative opportunities within the business for staff where possible.
Morrisons currently operates around 1,700 Morrisons Daily convenience stores across the UK and said the closures would target outlets that have remained loss-making for several years.
Despite the planned shutdowns, the retailer said it still intends to expand its franchise operations, revealing plans to open hundreds of additional franchise stores in the coming years as part of its 2026 growth strategy.
A spokesperson for the UK government described the closures as a commercial decision by Morrisons, while acknowledging concerns for affected workers and families.
The development comes as retailers across the UK continue to warn about mounting financial pressure caused by inflation, wage increases, higher taxes and additional environmental levies tied to packaging recycling regulations.
Industry concerns have also intensified amid fears that food inflation could rise sharply later this year due to global economic tensions and disruptions linked to the ongoing conflict involving Iran, Israel and the United States.
Several supermarket executives have recently criticised suggestions that retailers voluntarily freeze grocery prices, arguing that government policies are already contributing to rising costs across the sector.
