Major UK supermarket chain to shut 100 stores as it blames Labour for rising costs

Morrisons said on Thursday that a review had been taken to shut the 100 convenience stores, which had been unprofitable for years.

"This situation has been exacerbated in more recent years by significant cost increases resulting from government policy choices, which have made returning these stores to profitability even more difficult."

Workers at the affected branches were informed of the proposals on Thursday, with the closures due to take place over the coming months.

The closures are the latest in a series of cost-cutting measures by Morrisons, which has already shut pharmacies, cafés, meat counters and florists in its stores.

Morrisons said it would try to find alternative roles for affected staff within its supermarkets and manufacturing operations where possible.

The move marks a major shake-up for the supermarket's convenience store business and could affect hundreds of jobs across the country.

Every store earmarked for closure was originally part of the McColl's chain, which Morrisons purchased in 2022 before converting the sites to its Daily convenience brand.

The supermarket has described these Morrison's Daily outlets as the "most challenged" within its portfolio, with all of them operating at a loss.

Morrisons will attempt to find alternative roles for displaced staff across its wider business, including positions at its larger supermarkets and manufacturing facilities.

Despite the wave of closures, the company maintains it remains fully committed to expanding its convenience offering, with chief executive Rami Baitiéh having previously outlined ambitions to open hundreds of new Daily stores in the years ahead.

This marks the third significant wave of job losses at Morrisons since the start of 2026.

In April, the retailer announced plans to reduce headcount at its Hilmore House headquarters by roughly eight per cent as part of efforts to increase automation through artificial intelligence.

The company also recently merged its Daily convenience commercial and support teams with its main supermarket buying division, a restructure that eliminated around 100 positions.

These cost-cutting measures come as the private equity-owned chain grapples with economic pressures stemming from the Iran conflict while working to reduce its substantial £3.1billion debt burden.

The supermarket insists its broader convenience growth strategy remains on course despite the closures, with future expansion expected to rely predominantly on franchise partnerships rather than company-owned outlets.

Morrisons is also exploring opportunities to sell existing company-operated stores to franchisees as part of this shift in approach.

The convenience division has undergone considerable upheaval in recent months, including the sudden departure of convenience director Matt Heslop in February after less than twelve months in the position.

Mr Baitiéh's turnaround efforts have yielded some progress, with Morrisons reporting that its debt has fallen by 46 per cent since the restructuring programme commenced.