Morrisons to close over 70 outlets

Morrisons is shutting cafes and convenience stores across the UK as part of a major cost cutting drive despite returning to profit.

Morrisons closes 54 cafes and 17 Morrisons Daily stores

Morrisons plans to close more than 50 in-store cafes and a number of Morrisons Daily convenience stores across the UK as part of a restructuring drive. The changes will affect around 3,600 jobs. Earlier this year the group confirmed the closure of 17 Morrisons Daily stores, with the last outlet in Haxby, North Yorkshire, shutting on May 14. The company says returns to profit for the year to October 27, 2024, with pre tax profit of £2.1 billion, up from losses in previous years. A large part of that rebound came from the sale of its petrol forecourts to Motor Fuel Group for about £2.6 billion. On a continuing operations basis, losses have been halved to £538 million. Like-for-like sales rose 3.9% and total sales rose 4.2% to £3.9 billion in the second quarter of the year.

The closures come as part of broader cost cutting across the sector, with Aldi, Tesco and Sainsbury's also cutting staff and, in Sainsbury's case, closing all in-store cafes. Chief executive Rami Baitiéh said the focus remained on providing value to customers during a challenging economic climate marked by inflation and subdued consumer spending.

These moves show how Morrisons is balancing the need to shrink costs with the pressure to invest in groceries that customers trust. Relying on asset sales to lift profit signals a short term fix rather than a long term plan to strengthen core grocery operations.

The company benefits from a better balance sheet but the human cost is visible in thousands of job losses and reduced store access. In the wider economy, the closures could weigh on local shopping districts and raise questions about how retailers can sustain service levels while keeping prices fair. The coming year will test whether Morrisons can translate asset gains into durable growth that helps ordinary shoppers rather than simply trimming overhead.

Highlights

The next year will reveal whether Morrisons can turn asset-driven gains into lasting value for customers and shareholders.