Morrisons to Shut Dozens of Cafés, Counters and Stores in Cost-Cutting Drive

Morrisons has announced a sweeping overhaul of its UK operations, confirming plans to shut dozens of cafés, counters, and convenience outlets as part of its ongoing optimisation strategy aimed at cutting costs and accelerating growth.

In a press statement, the supermarket giant said the changes form part of the second year of its 'programme of renewal' and are designed to streamline its network while focusing investment on areas that deliver the most value to customers.

Closures Across Cafés, Kitchens and Stores

A company-wide review identified areas where operational costs were 'significantly out of line' with customer usage and demand.

As a result, Morrisons will close 52 Cafés, all 18 Market Kitchens, 17 convenience stores, 13 florists, 35 meat counters, 35 fish counters and four pharmacies over the coming months.

Although most affected employees are expected to be redeployed within the company, around 365 staff are at risk of redundancy.

Chief Executive Rami Baitiéh said the move was necessary to 'renew and reinvigorate' the business.

'The changes we are announcing today are a necessary part of our plans to focus investment into areas customers really value and that can play a full part in our growth,' he said.

Focus on Modernisation

Mr Baitiéh added that while Morrisons Cafés remain a popular part of the brand's community offering, some locations had become unsustainable.

'In most locations the Morrisons Café has a bright future, but a minority face specific local challenges and, regrettably, closure and reallocation of space is the only sensible option,' he said.

He reaffirmed the company's commitment to its Market Street model but noted that modernisation would mean adjusting 'areas of the model which are simply uneconomic'.

Morrisons plans to work with third-party partners in some stores to provide specialist alternatives where counters or cafés are closing.

'We Do Not Take These Decisions Lightly'

While describing the changes as 'relatively small' within the scale of the overall business, Mr Baitiéh acknowledged the impact on staff.

'We do not take lightly the disruption and uncertainty this will cause to some of our colleagues. We will take particular care to look after all of them well through the coming changes,' he said.

The restructuring marks the latest phase in Morrisons' efforts to improve efficiency and profitability amid rising costs across the retail sector.