Morrisons is set to close over 100 of its company-owned convenience stores, a move that could jeopardize hundreds of jobs. This decision is part of a broader strategy to streamline operations and focus on profitable ventures.
Morrisons’ Convenience Store Closures
The closures predominantly affect stores acquired during a £190 million rescue deal for McColl’s in 2022. These locations have reportedly been loss-making for several years, despite attempts to revitalize their performance.
This decision comes shortly after Morrisons announced plans to rebrand hundreds of corner shops across England as its own Morrisons Daily stores. This highlights a significant shift towards a franchise model.
Franchise Expansion Strategy
Morrisons currently operates around 1,700 Morrisons Daily locations, with many of these run by independent retailers. Recent reports indicate that the supermarket aims to open 250 new convenience stores by 2026, allowing traditional shop owners to convert their businesses into franchises.
The convenience store market in the UK is thriving. Market research firm Mintel predicts that the industry, valued at approximately £54 billion in 2025, will grow to £61.8 billion by 2030.
- 2025 Market Value: £54 billion
- 2030 Projected Value: £61.8 billion
This growth is attributed to increased investments by grocery chains in smaller formats to meet consumer demands for quick and accessible shopping experiences. Reports from Savills UK indicate that UK grocers are adapting their formats to reflect changing consumer preferences.
Recent Changes and Restructuring
The current closures are not the first for Morrisons. In March 2025, the retailer announced plans to shut down 17 convenience stores, alongside other operational cuts. CEO Rami Baitiéh noted that these changes are crucial for rejuvenating Morrisons and optimizing investments in areas that matter to customers.
Additionally, Morrisons has recently restructured its convenience and general merchandise teams, risking around 100 roles at its headquarters. This restructuring aims to consolidate operations to enhance efficiency.
While the closures may seem drastic, Morrisons emphasizes external pressures, including increased labor costs due to government policy changes, as significant factors influencing its decision-making.
The Future of Morrisons Convenience Stores
Despite the challenges faced by its company-owned c-stores, Morrisons appears committed to expanding its franchise model. The company introduced improved terms for its independent retail partners, enhancing rebates significantly to encourage participation.
Morrisons’ director of wholesale convenience, Paul Dobson, expressed optimism about the new terms, stating they are essential for achieving ambitious growth goals in the Morrisons Daily estate.
