Morrisons is preparing to shut around 100 loss-making Morrisons Daily convenience stores across the UK, putting hundreds of jobs at risk as the supermarket chain blames a surge in operating costs, higher wage bills and government policy changes for deepening pressure on weaker shops. The affected stores are understood to be sites that were previously part of McColl’s, the convenience chain Morrisons acquired in 2022.
The company has started a consultation with affected staff and said workers will be supported, with alternative roles offered elsewhere in the business where possible. Morrisons has not yet published a full list of locations, but the closures are expected to take place over the coming months and are focused on stores that have struggled for years despite efforts to improve performance.
The decision lands at a difficult moment for the UK grocery industry. Supermarkets are facing higher employment costs, including increases linked to the National Living Wage and employer National Insurance contributions, while food inflation and tight household budgets continue to shape shopper behaviour. For smaller convenience stores, those pressures can be harder to absorb because rent, staffing and supply-chain costs take up a larger share of sales.
Morrisons said the stores identified for closure had been loss-making for a long period. The company argued that recent cost increases linked to policy choices had made it even harder to return those shops to profitability. That framing puts the announcement directly inside the wider debate over whether government-imposed business costs are feeding through into shop closures, job cuts and higher prices for consumers.
Key details for shoppers and staff: around 100 Morrisons Daily stores are expected to close, hundreds of jobs could be affected, the sites are understood to be former McColl’s stores, and Morrisons says redeployment will be considered where possible.
Morrisons closures show pressure building across UK retail
The store closures do not mean Morrisons is stepping away from convenience retail. The group still operates a large Morrisons Daily network and has been expanding through franchise partnerships. The sharper point is that Morrisons appears to be separating stronger franchise-led growth opportunities from company-owned stores that no longer produce acceptable returns.
That split matters because convenience retail has become one of the most competitive parts of the grocery market. Shoppers want local access, longer opening hours and quick top-up purchases, but retailers must balance that demand against higher staffing costs and lower basket sizes compared with larger supermarkets.
The latest move also follows earlier restructuring at Morrisons, including cuts affecting cafes, counters and head office roles. It suggests the supermarket is still working through the financial consequences of its McColl’s takeover while trying to protect stronger parts of its estate.
For customers, the biggest immediate question is whether their local Morrisons Daily branch will be affected. Until a store list is confirmed, shoppers will need to wait for local notices or company updates. For employees, the consultation process will determine how many roles can be saved through redeployment.
According to Sky News, Morrisons has blamed rising costs for tipping the weaker stores further into loss. The wider backdrop is visible across the sector, with UK retail and supermarket chains under mounting pressure from labour costs, inflation and changes in consumer spending.
The Morrisons plan also fits into a broader high street story already seen across other retailers. Swikblog recently covered the strain facing supermarket and convenience operators in its report on the UK supermarket crisis and store closure risks, where rising costs and fragile margins were also central themes.
The closures are likely to sharpen the debate over whether Britain’s grocery sector can keep absorbing extra costs without further cuts. Morrisons is still backing convenience growth, but this round of closures shows that expansion and retrenchment can happen at the same time when weaker stores no longer survive the economics of modern retail.
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