Morrisons has been consulting staff about its plans to close down around 100 of its Morrisons Daily shops, in a move that could put hundreds of jobs at risk across the UK.
Supermarket giant Morrisons is reportedly preparing to shut around 100 outlets across the UK in a decision that could threaten hundreds of jobs.
Workers were briefed today (May 21) regarding the retail giant’s proposals to axe its own Morrisons Daily branches. The firm has stated that “where possible” it will attempt to secure positions for those impacted elsewhere within the organisation.
The shutdowns of the Morrisons Daily outlets are understood to be scheduled for the coming months. The chain is axing branches that are unprofitable and represent “the most challenged” parts of its portfolio, The Grocer reports.
Despite the closures, the company’s expansion blueprint still involves launching additional Morrisons Daily convenience outlets. Chief Executive Rami Baitiéh is understood to be targeting the launch of hundreds more over the next few years.
All the branches facing closure under the proposal are former McColl’s outlets. Morrisons acquired McColl’s in 2022, outbidding Asda to clinch the deal, reports the Mirror.
Morrisons’ expansion blueprint reportedly envisages the bulk of the new Morrisons Daily branches being operated as franchises, rather than under direct ownership by the supermarket group.
The chain has been wrestling with increased debt interest charges and tough market conditions in recent years. Proposals to axe more than 200 head office positions were revealed in April as part of broader cost-reduction initiatives.
Approximately 8% of positions at the firm’s headquarters at Hilmore House in Bradford were reportedly under threat. The alterations were designed to enhance how the business functioned across its various retail formats, a spokesperson explained.
Convenience outlets were recently transferred to Morrisons’ retail division, overseen by Group Retail Director, Martin Dawson, after the exit of group wholesale and convenience director Matt Heslop, during a restructure at the firm.
The supermarket chain has made a series of declarations since then, including expanding its digital services, and introducing a brand new fleet of delivery vehicles as part of plans to develop Morrisons Online.
It also revealed the rollout of male sanitary bins throughout its outlets, which total just under 500.
Earlier this week, the company confirmed it will provide workers with a wage increase from July 20 as part of an agreement supported by the union, USDAW.
For the latest breaking news and stories from across the globe from the Daily Star, sign up for our newsletters.