Supermarket chain Morrisons has announced plans to close 52 cafes and 17 convenience stores, putting hundreds of jobs at risk. This decision comes as the retailer seeks to redirect funds to more profitable areas of its business in response to increasing competition from discount rivals.
Key Takeaways
- Morrisons will close 52 cafes and 17 convenience stores, affecting around 365 jobs.
- The closures are part of a strategy to focus on more profitable areas amid rising competition.
- The affected cafes include locations in major cities like London, Leeds, and Glasgow.
- The company aims to redeploy most affected staff, but redundancies are expected.
Overview of Closures
Morrisons is set to shut down a number of in-store services, including meat and fish counters, pharmacies, and all market kitchens, which are small food courts offering freshly made meals. The closures will be rolled out over the coming months, with the majority of affected locations being Morrisons Daily convenience stores, known for their extended opening hours.
The closures will impact various locations across the UK, including:
- Cafes: 52 cafes will be closed in stores located in cities such as:
- Convenience Stores: 17 Morrisons Daily stores will also be shut down, including:
Reasons Behind the Decision
Morrisons has faced significant pressure from discount supermarket chains like Aldi and Lidl, which have been rapidly gaining market share. In 2022, Aldi surpassed Morrisons to become the UK’s fourth-largest supermarket chain. The company’s chief executive, Rami Baitiéh, stated that these changes are necessary to renew and reinvigorate Morrisons, allowing the retailer to focus its investments on areas that customers value most.
Impact on Employees
While Morrisons has indicated that most staff affected by the closures will be redeployed, approximately 365 employees are at risk of redundancy. The company employs around 95,000 people across its 500 supermarkets and 1,600 Morrisons Daily stores, making these closures a significant concern for many workers.
Industry Context
The decision to close cafes and convenience stores follows a similar move by rival Sainsbury’s, which recently announced the closure of its remaining cafes due to low customer usage. Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted that Morrisons is making adjustments to remain competitive in a price-sensitive market. The closures reflect a shift towards prioritising essential services over those considered non-essential.
As the supermarket landscape continues to evolve, Morrisons aims to free up cash to remain competitive against discount rivals, ensuring it can offer value to its customers in an increasingly challenging retail environment.
