Morrisons closes cafes and stores as part of a major shake-up
- Morrisons will redundantly close 52 cafes and 17 stores as part of its restructuring.
- Up to 365 jobs are at risk, although many affected staff are expected to be redeployed.
- This drastic move aims to allow further investment in areas that customers highly value.
In the UK, Morrisons, the fifth-largest supermarket chain, announced closures as part of a significant restructuring plan aimed at directing resources to more valued customer areas. As part of this overhaul, the company will shutter 52 cafes and 17 convenience stores, putting approximately 365 jobs at risk. The closures are a response to increased operational costs that outstrip revenue, as economic pressures from growing discount competitors have intensified. Additionally, the supermarket chain will end various in-store services, including meat and fish counters, florists, and pharmacies. Morrisons CEO Rami Baitieh articulated that while these changes appear small relative to the overall business, they are crucial for renewing and revitalizing the store operations in a challenging retail landscape. The changes will be implemented over the coming months, with the hope that most affected employees will be redeployed within the company rather than face redundancy. This restructuring follows a detailed operational review and is a necessary step as Morrisons faced mounting challenges since being acquired by a private equity firm. The closures mostly target cafes and in-store services that do not generate sufficient customer volume or revenue. Morrisons is also looking to collaborate with third-party specialists to provide relevant offers at some locations affected by the changes. The company aims to reallocate investments to services that will aid its growth and stability in a competitive market where it has recently been surpassed by Aldi in market share.