Morrisons Plans to Close Company Owned Stores Across the United Kingdom

The UK retail sector continues to face significant challenges, and Morrisons has become the latest major supermarket chain to announce a series of store closures.

The company has confirmed plans to close around 100 company-owned convenience stores over the coming months, with the first seven locations already identified.

The decision has raised concerns among employees, customers, and local communities, particularly in areas where convenience stores play an important role in everyday shopping. While Morrisons has described the move as a necessary business decision, it also highlights the ongoing pressures facing retailers across the UK.

This article explores why Morrisons plans to close company owned stores across the United Kingdom, which locations are affected, and what the changes could mean for the future of the retailer and the wider high street.

Why Is Morrisons Planning to Close Company-Owned Stores Across the United Kingdom?

Morrisons announced last month that it intends to shut approximately 100 stores from its company-owned Morrisons Daily convenience chain. According to the retailer, the affected stores are among the most challenged locations within its portfolio and have been operating at a loss for several years.

Most of the stores identified for closure were acquired as part of Morrisons’ takeover of McColl’s in 2022. While the acquisition expanded Morrisons’ convenience store footprint significantly, some locations have struggled to generate sustainable profitability.

Background Behind the Decision

The acquisition of McColl’s provided Morrisons with access to hundreds of convenience stores across the country. However, not every location has performed as expected.

Following an ongoing review of its convenience business, Morrisons identified a number of stores that continue to underperform despite efforts to improve their results. The retailer stated that remedial actions had been taken, but some stores remained loss-making.

How Have Rising Costs Influenced Store Closures?

The retailer also pointed to rising operating costs as a major factor behind the decision. Like many businesses across the UK, Morrisons has faced increasing expenses related to:

• Energy costs
• Labour costs
• Business rates
• Supply chain pressures
• Inflation-related expenses

A retail consultant, James Fletcher, who has advised convenience retailers on operational performance and profitability, explained the situation this way:

“In my experience, convenience stores that have struggled financially for several years become increasingly difficult to recover when operating costs continue to rise. Retailers often have to make difficult decisions to protect the long-term health of the wider business, even when those decisions are unpopular locally.”

The combination of underperforming stores and increasing costs appears to have accelerated Morrisons’ decision to proceed with the closure programme.

Which Morrisons Daily Stores Have Been Confirmed for Closure?

Although Morrisons has not yet released the full list of around 100 stores expected to close, it has confirmed the first seven Morrisons Daily locations affected by the plans.

Morrisons Daily Store	Location
Fairfax Avenue	Hull
Esk Close	Guisborough
Zetland Road	Loftus
Stokesley High Street	Middlesbrough
Queen Street	Redcar
Middle Street	South Driffield
Woodthorpe	York

These stores are among the first locations identified as part of the retailer’s review process.

For customers living in these communities, the closures may reduce local shopping options and require them to travel further to access alternative convenience stores or supermarkets.

How Many Morrisons Stores Could Be Affected by the Closure Programme?

The seven confirmed closures represent only the beginning of the planned programme.

Morrisons has indicated that approximately 100 company-owned convenience stores could close over the coming months. However, it is important to note that this does not mean the retailer is withdrawing from the convenience market altogether.

The company currently operates:

• Around 1,700 convenience stores
• Approximately 500 supermarkets
• A workforce of roughly 95,000 employees

Many of the convenience locations operate under franchise agreements rather than direct company ownership. Morrisons has stated that expanding its convenience business remains a key part of its future growth strategy.

As a result, while some stores are closing, new franchise openings may continue elsewhere across the UK.

What Impact Will the Morrisons Store Closures Have on Employees?

One of the most significant concerns surrounding the closure programme is its impact on employees.

Hundreds of jobs could be affected as stores shut their doors over the coming months. Although Morrisons has not confirmed the exact number of roles at risk, affected employees are likely to face uncertainty during the transition period.

Potential Effects on Jobs and Local Employment

Store closures can have a wider impact beyond the employees directly involved. Local economies often rely on retail businesses to provide employment opportunities and contribute to community activity.

Employees may face:

• Potential redundancy consultations
• Opportunities for redeployment within Morrisons
• Changes to working hours or locations
• Increased competition for local retail jobs

A senior retail workforce adviser, Sarah Thompson, who has worked with supermarket employers during restructuring programmes, described the situation this way:

“When large retailers close stores, the priority is often to explore redeployment opportunities wherever possible. In my experience, employees value clear communication and early support because it helps them understand what options are available and reduces uncertainty during what can be a difficult period.”

The extent of the employment impact will become clearer as additional store closures are confirmed.

How Will Customers Be Affected by the Morrisons Daily Store Closures?

For many customers, particularly those living in smaller communities, convenience stores provide quick access to everyday essentials.

The closure of local Morrisons Daily stores may create challenges for:

• Elderly residents
• People without access to a vehicle
• Customers who rely on nearby convenience shopping
• Rural communities with limited retail options

Some customers may need to travel further to reach alternative supermarkets or convenience stores. In areas where multiple retailers remain available, the impact may be less significant. However, in smaller towns and neighbourhoods, the loss of a local convenience store can affect shopping habits and reduce footfall for nearby businesses.

What Does Morrisons Say About Its Future Convenience Store Strategy?

Despite the closure plans, Morrisons has made it clear that convenience retail remains an important part of its business strategy. According to company statements, the retailer intends to focus resources on stores that perform well while continuing to expand through attractive franchise opportunities.

The company has stated that the combination of closing loss-making locations and opening new franchise stores will allow it to concentrate on areas where customer demand and commercial performance are strongest. This approach reflects a broader trend within the UK grocery sector, where retailers increasingly prioritise operational efficiency and sustainable growth over rapid expansion.

How Do These Closures Fit Into Morrisons’ Wider Business Changes?

The latest store closure announcement follows a series of operational changes introduced by Morrisons over the past year.

The retailer has previously closed or reduced services, including:

• In-store cafés
• Florist departments
• Fresh food counters
• Other underperforming retail services

These decisions form part of a wider effort to streamline operations and improve financial performance.

Like many supermarket chains, Morrisons continues to evaluate which services and locations generate sufficient customer demand and profitability. By concentrating resources on stronger-performing areas of the business, the retailer aims to remain competitive within a challenging market environment.

What Challenges Are UK Supermarkets and Convenience Retailers Currently Facing?

The difficulties experienced by Morrisons reflect broader issues affecting the UK retail industry. Supermarkets and convenience retailers are currently dealing with a range of challenges, including rising costs and changing consumer behaviour.

Some of the key pressures include:

• Inflation is affecting operating expenses
• Higher wage costs
• Increased energy prices
• Supply chain disruptions
• Greater competition from discount retailers
• Changing consumer spending patterns

Many shoppers are becoming more price-conscious as household budgets remain under pressure. This has intensified competition among supermarkets seeking to attract and retain customers.

Convenience stores face additional challenges because they often operate with smaller margins than larger supermarkets while still facing similar cost pressures.

How Do Morrisons’ Closures Compare With Other Recent High Street Closures?

Morrisons is not the only business making difficult decisions within the current retail environment. Recent months have seen numerous closures across the UK high street, affecting retailers, restaurants, and hospitality operators.

Examples include:

• Quiz Clothing is entering administration
• Poundstretcher warns of financial difficulties
• Franco Manca is announcing the closure of 16 restaurants
• The Real Greek is confirming nine closures
• Around 200 Brewers Fayre and Beefeater restaurants are facing closure plans
• Store closures by GAME, Poundland, Claire’s Accessories, and The Original Factory Shop

These developments demonstrate that challenges extend far beyond the supermarket sector. Many businesses continue to review their operations as they respond to changing consumer habits, rising costs, and economic uncertainty.

What Could the Future Hold for Morrisons and the UK High Street?

The future of Morrisons will likely depend on its ability to balance cost management with growth opportunities.

While the closure of around 100 company-owned stores may appear significant, the retailer’s ongoing investment in franchise expansion suggests that convenience retail remains central to its long-term plans.

Across the wider retail industry, businesses are increasingly focused on:

• Improving operational efficiency
• Enhancing customer experiences
• Investing in technology
• Expanding successful formats
• Reducing exposure to underperforming locations

The UK high street continues to evolve, and retailers that adapt successfully to changing market conditions are more likely to achieve sustainable growth in the years ahead.

Conclusion

The announcement that Morrisons plans to close company-owned stores across the United Kingdom highlights the challenges currently facing retailers throughout the country.

While the decision is expected to affect employees, customers, and local communities, Morrisons maintains that the closures are necessary to address long-standing losses and strengthen its convenience business.

The first seven Morrisons Daily stores have already been identified, with further announcements expected as the review continues. At the same time, the retailer remains committed to growing its convenience presence through franchise partnerships and strategic investment.

As the UK retail landscape continues to evolve, Morrisons’ actions may serve as a reflection of the difficult decisions many businesses are making to remain competitive and financially sustainable.

FAQs

Are all Morrisons Daily stores closing in the UK?

No. Morrisons is planning to close around 100 company-owned convenience stores, but the vast majority of its convenience network will remain operational.

Why are the affected Morrisons stores mainly former McColl’s locations?

Many of the stores identified for closure were acquired through Morrisons’ purchase of McColl’s in 2022 and have reportedly faced profitability challenges for several years.

Will Morrisons open new stores while closing others?

Yes. Morrisons has stated that franchise expansion remains a key part of its convenience growth strategy.

How many people work for Morrisons across the UK?

Morrisons employs approximately 95,000 people across its supermarkets, convenience stores, and other business operations.

What happens to employees when a Morrisons store closes?

Employees may be offered redeployment opportunities, enter consultation processes, or face redundancy depending on the circumstances of each closure.

Are Morrisons supermarkets affected by these closures?

The current closure programme is focused on certain company-owned convenience stores rather than the retailer’s supermarket estate.

What do these closures indicate about the future of the UK high street?

They reflect ongoing challenges such as rising costs, changing consumer behaviour, and increased competition, which are affecting many retailers across the UK.