Morrisons is to begin closing around 100 convenience stores from next month, in a restructuring of its smaller-format estate that will deepen concerns over pressure on UK high streets and the economics of local retail.
The supermarket group said the closures will predominantly affect Morrisons Daily outlets, many of which operate in smaller communities and urban high streets following its acquisition of McColl’s.
The company said the stores had faced “challenged performance for a number of years” and remained loss-making despite remedial action.
“The performance of all company-owned stores across our Convenience business is subject to continuous review,” Morrisons said. “Having completed the review, we are now proposing to take the tough but necessary decision to close a number of these stores over the next few months.”
The restructuring is expected to have knock-on effects for local services, with some closures impacting in-store Post Office branches. Morrisons said it would “welcome applications from nearby retailers looking to host a Post Office inside their store” to maintain continuity of service.
The decision underscores the difficulties facing UK convenience retail, where operators have come under pressure from rising labour costs, higher business rates and persistent inflation in energy and supply chains.
Morrisons previously attributed “significant cost increases” linked to government policy as a contributing factor to store rationalisation, reflecting broader tensions between retailers and policymakers over the burden of operating costs.
Analysts said the move was part of a wider consolidation trend in the convenience sector, as supermarkets reassess smaller-format expansion strategies that accelerated during the pandemic and subsequent cost-of-living squeeze.
The group’s McColl’s acquisition, completed in 2022, expanded its presence in local convenience retail but has since required restructuring amid weaker-than-expected profitability in parts of the estate.
Retail experts said the closures highlighted the structural challenges facing high street convenience stores, particularly in areas with declining footfall and intense competition from larger supermarkets and online grocery delivery services.
The announcement comes as Morrisons continues to invest in customer engagement initiatives, including a digital sweepstake tied to its More Card loyalty app, which offers points-based rewards and promotional giveaways linked to major sporting events.
The company said the initiative was designed to drive engagement ahead of the summer sporting calendar, although analysts noted that such promotions sit alongside ongoing cost pressures across its physical store network.
The closure programme will be closely watched for its impact on local employment and community services, particularly in areas where Morrisons Daily outlets have become embedded in daily shopping and postal access.
The group has not disclosed how many jobs may be affected but said it would support affected staff through redeployment where possible.
The move adds to a growing list of UK retailers rationalising store footprints as inflationary pressures, changing consumer habits and higher operating costs continue to reshape the sector.
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