Morrisons closures: why is supermarket closing Daily stores, cafes and UK jobs - the story behind the news

• Morrisons is closing 174 stores and services, affecting 365 jobs across cafés, convenience stores, and counters
• Rising costs and shifting consumer habits have made these services financially unsustainable
• Competition from Aldi and Lidl is pressuring Morrisons to focus on affordability and efficiency
• Recent government policies have also increased business costs, adding to financial strain

This week (March 24) UK supermarket chain Morrisons announced plans to close multiple in-store services and convenience stores, putting approximately 365 jobs at risk.

The move will affect 52 cafés, all 18 Market Kitchens, 17 Morrisons Daily convenience stores, 13 florists, 35 meat counters, 35 fish counters, and four pharmacies. A combined total of 174 closures.

The closing of these services comes as part of the company’s wider strategy to focus on areas that are most valuable to customers, and to maintain long-term financial sustainability.

But why is Morrisons making these cuts, and what does it say about the company's overall position in the supermarket landscape?

Read more: The full list of Morrisons stores and cafes affected by closures - and which pharmacies are closing

Why is Morrisons closing cafés and stores?

Morrisons has blamed rising operational costs as a key factor behind the closures, with Chief Executive Rami Baitiéh explaining in a statement that the affected outlets and services have become more costly to operate than the revenue they generate.

He called the decision a "necessary part of our plans to renew and reinvigorate" the business and assured customers that the company remains committed to its core operations, including its Market Street offering.

While cafés remain an important part of Morrisons' customer experience, Baitiéh acknowledged that some locations have struggled with "specific local challenges," making closure the only “sensible” option.

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Similarly, the decision to shut Market Kitchens - first launched in 2019 and designed to provide freshly prepared meals in-store - shows that the concept has perhaps not performed as well as expected.

Morrisons Daily convenience stores, which offer extended hours and local shopping options, are also seeing a number of closures.

But the company is not withdrawing from the convenience market entirely, and it is instead focusing on optimising performance in higher-performing locations.

Why is Morrisons making cuts?

Morrisons, like other major UK supermarkets, has been facing increased financial pressures due to rising costs and shifting consumer behaviours.

The company has struggled to maintain its market share against discount rivals such as Aldi and Lidl, which continue to attract cost-conscious shoppers.

This competitive pressure has made it more difficult for Morrisons to sustain services that do not directly contribute to overall profitability.

The rise of online shopping has also played a role in reshaping the supermarket landscape, and more consumers are opting for home delivery or click-and-collect services.

This reduces footfall in physical stores, in turn making certain in-store services less viable.

Recent government policies have also added to the strain. The upcoming rise in National Insurance contributions and an increase in the national minimum wage will increase business costs significantly.

Baitiéh has stressed that despite these additional pressures, Morrisons will strive to keep prices low for customers.

The recent closures follow a broader pattern of cost-cutting at Morrisons. In January 2025, the supermarket announced over 200 job cuts within its retail people team as part of an internal restructuring effort.

The move was positioned as a response to the "avalanche of costs" that businesses were expected to face following the government’s October 2024 Budget.

Is Morrisons struggling?

Despite a raft of cost-saving measures, Morrisons is not really in a dire financial position, and has even shown signs of growth in recent months.

In early 2025, Baitiéh described Morrisons’ past year as one of "urgent reinvigoration," reporting that the supermarket had witnessed its strongest quarter since early 2021.

He credited the improvement to better store availability, sharper pricing, more effective promotions, and a stronger loyalty scheme.

Morrisons has also been actively expanding its leadership team to strengthen its market position, and in February 2025, hired former Lidl chief operating officer Matt Heslop as its new director of convenience and wholesale.

So while some underperforming convenience locations are closing, Morrisons still sees potential, and plans to invest strategically in its growth.

By cutting underperforming services and refocusing its efforts on key areas such as affordability, availability, and customer loyalty, Morrisons is hoping it can maintain its place in the highly competitive grocery sector.

But of course, that will be little reassurance for employees, and staff are likely anxious about their future employment prospects, especially in a sector where job opportunities are also becoming increasingly competitive.

How are other supermarkets faring?

It’s worth bearing in mind that Morrisons is not alone in its decision to make cuts, and its latest announcement is one that aligns with broader trends in the UK retail industry.

Other major supermarkets, including Tesco and Sainsbury’s, have also been making cuts in response to increasing costs and changing shopping habits, as discount retailers like Aldi and Lidl continue to gain ground.

The UK’s more “traditional” established supermarkets are having to adapt by focusing on their core strengths and eliminating less profitable areas to keep up.

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