Morrisons closes 15 outlets in Scotland

Morrisons plans to close 13 cafes and 2 Morrisons Daily stores in Scotland, risking 3,617 jobs across the UK.

Morrisons closes 15 outlets in Scotland amid UK cost cuts

Morrisons has announced the closure of 13 cafes and two Morrisons Daily stores in Scotland as part of a broader UK cost cutting drive, affecting about 3,617 jobs across the group. The move follows a return to pre tax profit of 2.1 billion pounds for the year to October 27, 2024, boosted in part by the 2.6 billion pounds earned from selling petrol forecourts to Motor Fuel Group.

Underlying performance improved as losses in continuing operations narrowed to 538 million pounds from 1.09 billion the year before, with like for like sales up 3.9 percent and total sales up 4.2 percent to 3.9 billion pounds in the second quarter. Filings at Companies House show the workforce shrinking from 104,819 to 101,144 across store, manufacturing, distribution and head office roles. Chief Executive Rami Baitieh said the focus remains on delivering value to customers in a difficult economy marked by inflation, while earlier this year Morrisons shut 17 Morrisons Daily stores and signaled plans to close more than 50 in store cafes. The closures fit a broader trend of cost cutting across the supermarket sector, with peers such as Aldi, Tesco and Sainsbury's pursuing similar measures.

The closures illustrate a shift from growth through expansion to leaner operations that lean on asset sales to lift overall profitability. They reveal how a price driven strategy can coexist with a shrinking footprint. For local communities, the loss of cafes and convenient stores is a reminder that efficiency comes with social costs. The company faces the challenge of maintaining service levels while doing enough to protect margins in a high inflation environment.

Looking ahead, the industry will watch whether Morrisons can sustain competitive prices without eroding access to essential services. If savings do not translate into reliable customer experience, shoppers may migrate to rivals. The episode also highlights how political and public reaction can intersect with business strategy when job losses touch local economies.

Highlights

The path forward will test how far price value can shield a familiar high street presence