Morrisons Blames Government as 100 Local Stores Face Closure – NATIONAL NEWS
Hundreds of jobs are under threat after Morrisons announced plans to shut around 100 convenience stores, with the supermarket giant blaming soaring costs and government policies for worsening pressure on retailers.
The chain said the closures were part of a major review of its Morrisons Daily estate, with a number of loss making stores expected to shut over the coming months. Staff are now facing an uncertain future as consultations begin.
Morrisons said the decision had been driven by rising operating costs and claimed recent government policies had made struggling shops even harder to run profitably.
In a statement, the company said:
“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.”
The warning is the latest sign of growing anger among Britain’s supermarket bosses over Labour’s handling of the economy. Retailers have been hit by rising National Insurance contributions, increasing wage bills, green levies and spiralling energy costs.
Morrisons chief executive Rami Baitieh has previously warned about the “avalanche of costs” facing supermarkets, amid fears many businesses are being pushed to breaking point.
Morrisons has not yet released the full list of the 100 stores earmarked for closure. However, the closures are expected to affect mainly former McColl’s convenience stores that Morrisons bought after the chain collapsed in 2022.
While Morrisons said it would try to redeploy workers into other parts of the business where possible, hundreds of jobs remain at risk.
Retail leaders across the country have become increasingly vocal about Labour’s economic policies. Asda chairman Allan Leighton recently said the Government had become “more and more difficult” to deal with, while Marks & Spencer boss Stuart Machin accused ministers of driving up energy costs for businesses.
Machin also criticised reports Labour could consider food price caps in an attempt to tackle cost of living pressures, branding the idea “completely preposterous”.
The latest closures come as Morrisons fights to regain ground in an increasingly competitive supermarket sector.
Figures from Worldpanel show the retailer’s share of the grocery market has fallen to 8.4 per cent, leaving it level with discount rival Lidl. Just four years ago, Morrisons held around 10 per cent of the market while Lidl stood at 5.5 per cent.
The supermarket has also struggled under a heavy debt burden since its £10 billion takeover by private equity firm Clayton, Dubilier & Rice in 2021. Morrisons reported losses of £381 million last year, with interest payments on its debts contributing heavily to the decline.
The company has already been cutting costs aggressively. Earlier this year, Morrisons announced plans to reduce around 100 office jobs, while a number of cafés, meat counters and fish counters have also disappeared from stores.
Industry experts warn more closures could follow across the retail sector if costs continue rising.
For many shoppers and workers, the Morrisons announcement will fuel fears that the government’s economic approach is placing growing strain on businesses already struggling with inflation, weak consumer spending and mounting bills.
The Government was approached for comment, with a spokesman describing the closures as “a commercial decision for Morrisons”.
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