Key Points
Morrisons confirmed closure locations for 100 underperforming Morrisons Daily convenience stores nationwide.
The closures target stores acquired during Morrisons' £190 million McColl's takeover in 2022.
Morrisons' annual losses narrowed by £33 million, bringing total net loss to £318 million.
Morrisons operates around 1,700 Daily stores, with roughly 700 run by franchisees.
Morrisons stores are facing a major shake-up across the UK. Morrisons confirmed location names for its first wave of store closures, due to take place throughout the year, as part of a wider restructuring that will close 100 supermarkets for good. The majority of stores being shut down are the retailer’s smaller Morrisons Daily branches. The grocer cited rising statutory costs as the driving force behind the cuts, marking one of the year’s biggest UK retail contractions.
Why Morrisons Is Closing These Stores
Cost pressure, not poor sales alone, is driving this decision. Morrisons said rising costs linked to government policies had made it harder to return the stores to profitability. CEO Rami Baitiéh previously described the impact as an “avalanche of costs.”
Retailers have faced higher costs following increases to the National Living Wage and National Insurance rate paid by employers. These statutory changes have squeezed already thin margins at Morrisons’ smaller convenience locations significantly.
Which Stores Are Affected: The McColl’s Connection
Every closing store traces back to one acquisition. The stores earmarked for closure were all previously part of the McColl’s convenience chain, which Morrisons bought out of administration for £190 million in 2022. The supermarket acquired 1,164 McColl’s stores and rebranded them as Morrisons Daily.
Confirmed closure locations so far include:
- Woodley (Reading, Berkshire) closing July 12, including its Post Office
- Storrington (West Sussex) confirmed after failing to turn a profit
- Fairfax Avenue (Hull, Yorkshire) confirmed in the first regional wave
- Marshalswick Quadrant (St Albans) set to shut by mid-August
The Financial Picture Behind the Cuts
The closures fit into a broader cost-cutting push at Morrisons. In its latest financial reporting period, Morrisons’ annual losses narrowed by £33 million, bringing total net loss down to £318 million. Morrisons has already reduced in-store services, including pharmacies, cafés, meat counters, and florists.
Retail analysts see pruning the bottom 100 loss-making branches as a tactical move to accelerate bottom-line recovery and protect the core supermarket business.
Franchise Growth Continues Despite Closures
Morrisons isn’t retreating from convenience retail entirely; it’s restructuring how it operates. The grocer currently operates around 1,700 Morrisons Daily shops, with approximately 700 run by franchisees. Last year, it opened more than 120 new franchise outlets.
“We continue to see the opportunity to open hundreds more franchise convenience stores in the years ahead,” a company spokesperson said. Independent franchise-operated Morrisons Daily locations are 100% exempt from these closures.
Related Stocks in UK Grocery Retail
Morrisons’ restructuring reflects wider pressure across the UK supermarket sector. Related companies to watch include:
- Tesco (LON: TSCO) UK’s largest grocer, also navigating rising labor cost pressures
- J Sainsbury (LON: SBRY) direct competitor expanding convenience formats more cautiously
- Marks & Spencer (LON: MKS) UK retail peer adjusting store footprint amid cost inflation
Morrisons’ confirmation of 100 store closures on June 29, 2026, signals a decisive pivot toward franchise-led convenience growth, even as company-managed sites bear the brunt of rising UK employment costs.
Disclaimer
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice
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