Morrisons Refocuses Convenience Strategy Amid Rising Cost Pressures

Morrisons is reshaping parts of its convenience store estate as the supermarket continues to invest in a stronger, more sustainable long-term retail strategy.

The Bradford-based retailer has confirmed plans to close a number of its underperforming Morrisons Daily convenience stores over the coming months following a review of sites that have remained unprofitable for several years.

Importantly, Morrisons stressed that the affected stores represent only a small proportion of its wider convenience operation, which now totals around 1,700 Morrisons Daily outlets across the UK, including approximately 700 franchise locations. The business has made clear it remains committed to growing its convenience presence through its expanding franchise model.

The retailer said recent increases in operating costs — including higher National Insurance contributions, National Living Wage rises and additional packaging legislation costs — have made it increasingly difficult to return some locations to profitability.

Despite the closures, Morrisons continues to demonstrate resilience in a highly competitive grocery market. The supermarket reduced its annual net loss to £318 million and has significantly lowered debt levels from their 2022 peak.

The move also reflects Morrisons’ broader focus on operational efficiency and strategic growth areas, particularly convenience franchising, where the retailer continues to see long-term opportunity as shopping habits evolve towards smaller, more frequent local purchases.

Morrisons said consultations are taking place with affected staff and unions, with efforts being made to offer alternative roles within nearby stores and factories wherever possible.

The supermarket remains one of the UK’s best-known food retailers and continues to invest heavily in its fresh food credentials, convenience offer and wholesale partnerships as it adapts to changing consumer behaviour across the grocery sector.