Full Breakdown
Morrisons to Close Underperforming Morrisons Daily Stores Amid Rising Cost Pressures
5/22/2026, 8:48:10 PM
Core Decision: Store Closures and Redundancies
Morrisons announced a “tough but necessary decision” to shut a number of loss-making Morrisons Daily convenience outlets across the United Kingdom. The chain, which operates roughly 1,700 such stores and added more than 120 franchise locations last year, said the closures will trigger a consultation on redundancies. While the exact headcount has not been disclosed, the company confirmed that “hundreds of jobs will be affected,” adding that staff will be offered alternative opportunities where possible.
Background: Government Policies and Inflation Pressures
The retailer attributes the closures to a “significant cost increase resulting from government policy choices.” Since April 2023, UK supermarkets have faced higher employer National Insurance contributions, a rise in the national minimum wage, and charges under the government’s Extended Producer Responsibility (ERP) scheme for packaging recycling. Food price inflation remains above the Bank of England’s 2 % target, with the annual rise in food prices at 3 % in April, outpacing the overall 2.8 % inflation rate.
Data & Statistics
- Approximately 200 jobs were previously flagged as at risk at Morrisons’ Bradford headquarters.
- The chain runs about 1,700 Morrisons Daily stores, with 120 new franchise sites opened in the last year.
- Food price inflation: 3 % (April) vs. overall inflation 2.8 %.
- Inflation has been above the Bank of England’s 2 % target for an extended period.
Official Statements & Responses
A Morrisons spokesperson said the company will “try to find other opportunities for the staff affected by the closures” and emphasized that the stores targeted “have been loss-making despite remedial action.” A government spokesperson framed the move as a commercial decision, noting that “a broad range of support is available for those affected. Acas can also provide employees and employers with free, impartial advice on workplace rights, rules, and best practice.”
Industry Criticism
Former Sainsbury’s chief executive Justin King rebuked the Treasury’s request that supermarkets voluntarily freeze key grocery prices. He argued the sector is already “highly competitive” and called the request “hypocritical” given that government policies are contributing to inflation.
Conflicting Reports & Gaps
Morrisons has not disclosed the precise number of redundancies or identified which specific stores will close, leaving a gap in public understanding of the full impact.
Verbatim Quotes
- “tough but necessary decision” — Morrisons spokesperson
- “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,” — Morrisons spokesperson
- “A broad range of support is available for those affected. Acas can also provide employees and employers with free, impartial advice on workplace rights, rules, and best practice.” — Government spokesperson
What’s Next: Expansion Plans and Potential Further Closures
Morrisons outlined a “robust expansion plan” for 2026, aiming to open hundreds of additional franchise stores despite the current closures. The government continues to encourage voluntary price freezes, linking any regulatory easing to compliance. Stakeholders will monitor whether the announced expansion proceeds as scheduled and whether further store closures become necessary under ongoing cost pressures.
