Supermarket giant Morrisons has announced significant changes that will see the closure of over 50 cafes and 17 convenience stores across the UK, putting 365 jobs at risk. This decision, revealed on March 24, 2025, is part of a broader strategy aimed at streamlining operations amid rising costs and increasing competition from discounters such as Aldi and Lidl.
As part of a wide-ranging review of its business strategy, Morrisons plans to shut down 52 cafes, all 18 Market Kitchens, 17 Morrisons Daily convenience stores, 13 florists, 35 meat counters, 35 fish counters, and four pharmacies. The closures have been described as necessary by Morrisons' Chief Executive Rami Baitiéh, who stated, "The changes we are announcing today are a necessary part of our plans to renew and reinvigorate Morrisons and enable us to focus our investment into the areas that customers really value and that can play a full part in our growth." This statement highlights the supermarket's efforts to direct resources toward more profitable areas of the business.
Baitiéh emphasized the challenges that some locations faced, noting that in most cases, the Morrisons cafes have a "bright future," but specific local challenges have made closures "the only sensible option." While the company commits to deploying the majority of affected staff to other roles within the business, the move has raised concerns regarding job security for many employees during this transition.
The closures come at a time when Morrisons is working to recover from financial challenges. Reports noted that the supermarket achieved a revenue of £15.2 billion for the 12 months ending October 27, 2024, an increase from £14.7 billion in the previous year. Additionally, its group like-for-like sales rose from 1.8% to 4.1%. Despite these positive indicators, the ongoing cost of doing business has proved burdensome, prompting the need for this strategic refocus.
This announcement also reflects a broader trend in the grocery sector, with rival Sainsbury’s previously revealing its plans to cut over 3,000 jobs due to similar operational changes. As reported by City AM, Sainsbury's decision involved closing all remaining in-store cafes and reducing its senior management roles by 20%. The supermarket's workforce, which stands at 148,000, is being streamlined in an effort to manage operational costs amid economic pressures.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted that “Morrisons is on the defensive, as trolley wars threaten to break out in the supermarket sector.” She explained that the closure of non-essential services like cafes and an adjustment of the convenience format reflect a strategic move as competition stiffens in the grocery landscape. Mild price wars may serve as temporary relief for consumers, particularly lower-income families heavily affected by the ongoing cost of living crisis.
As Morrisons restructures, the company is also grappling with how recent changes to national insurance rates and the minimum wage are impacting operational costs. National insurance alone is predicted to cost the company about £75 million, exacerbating the urgent need for financial efficiency.
Morrisons' recent developments come on the heels of its recent ownership change when it was acquired by Clayton, Dubilier & Rice for £7 billion in 2021. Following this acquisition, the company has aimed to recover lost ground after being overtaken by Aldi in market rankings in 2022. With strategic initiatives to reinvigorate its market presence, Morrisons is set to focus on strengthening its core offerings, particularly in areas such as its loyalty programs and pricing strategies.
Many customers will be watching closely as Morrisons works through this transformation. The announced closures affect various locations, meaning shoppers across the UK may soon face changes in their local supermarkets. A full list of the cafes and stores set for closure includes:
- Bradford – Thornbury
- Portsmouth
- Newcastle – Great Park
- Blackburn – Railway Road
- Gorleston – Blackwell Road
- And many more...
As Morrisons navigates through these challenging adjustments, its commitment to focusing on customer needs and optimizing efficiency will be crucial in maintaining its position as a leading player in the supermarket sector.
In the coming months, customers and employees alike will be keeping a close watch on how these changes unfold and what the future holds for Morrisons as it aims to emerge stronger amid a fiercely competitive environment.
