Morrisons closes Glasgow cafes

Morrisons plans to close 13 Scottish cafes and two Morrisons Daily stores as part of UK-wide cost cuts, risking about 3,600 jobs.

Morrisons closes Glasgow cafes and cuts thousands of jobs

Morrisons will shut 13 cafes and two Morrisons Daily stores in Scotland as part of broader cost-cutting across the chain. The closures affect stores in Glasgow, Lanarkshire and Renfrewshire, and will put around 3,600 jobs at risk across the UK. The group posted a pre-tax profit of £2.1 billion for the year to October 27, 2024, a sharp rebound from losses in the previous years, helped in part by a £2.6 billion gain from selling petrol forecourts to Motor Fuel Group. Underlying performance also improved, with losses in continuing operations halved to £538 million.

Morrisons reported a 3.9% rise in like-for-like sales and a 4.2% rise in total sales in the second quarter of its current financial year. Filings at Companies House show the workforce shrinking from 104,819 to 101,144, reflecting job cuts in stores, manufacturing, distribution and head office roles. Chief Executive Rami Baitieh said the focus remains on delivering value to customers in a challenging economy marked by inflation and subdued spending. Earlier in the year the company closed 17 Morrisons Daily stores and has signalled more than 50 in-store cafe closures, underscoring a wider sector trend of cost-cutting as rivals also trim staff to protect margins.

The closures raise questions about the social role of large retailers. Communities rely on cafes as affordable local gathering spots, and the loss of thousands of jobs hurts households and high streets. The profit rebound, driven largely by asset sales, complicates the debate over corporate responsibility in hard times. The episode also highlights how private equity legacies shape risk in UK retail, where gains can come from asset sales while workers bear the cost. If more chains pursue aggressive cost-cutting, policymakers may come under pressure to consider service levels or local economic impact on communities.

Highlights

The balance between earning profits and protecting people remains a hot test for UK retail.