Morrisons to Shut 100 Stores, Citing Policy‑Driven Cost Pressures

Morrisons announced plans to shut 100 of its Morrisons Daily convenience outlets over the coming months. The chain says the stores have been loss‑making since their acquisition in the 2022 McColls deal and have not recovered despite remedial actions.

The retailer points to “significant cost increases resulting from government policy choices” as a key driver. Specific pressures include the rise in the national living wage, higher employer National Insurance contributions, and new fees for recycling packaging under the Extended Producer Responsibility scheme. These measures have lifted operating costs across the sector.

Food price inflation adds to the strain. In April, food prices rose 3 % year‑on‑year, outpacing the overall inflation rate of 2.8 %. Analysts warn that food inflation could climb toward 10 % by year‑end, further squeezing margins.

Morrisons operates roughly 1,700 convenience stores and added more than 120 franchise locations last year. The company has not disclosed the exact number of staff facing redundancy, but industry observers estimate hundreds of jobs are at risk. A spokesperson said Morrisons will seek alternative roles for affected employees where possible.

The closures follow a previous round of cuts that saw 52 cafés and 17 convenience stores shut, and a recent announcement that about 200 jobs at the Bradford headquarters are under threat. Despite the pull‑back, Morrisons maintains a “robust expansion plan” for 2026, targeting new franchise openings.

Government officials framed the decision as commercial, noting that support services such as Acas are available to workers. Retailers have repeatedly argued that policy‑driven cost hikes—particularly higher wages and taxes—have eroded profitability, prompting calls for regulatory relief.

What to watch next: how Morrisons’ restructuring will affect its market share and whether the government will adjust the cost pressures that supermarkets cite as a catalyst for store closures.