Morrisons has confirmed plans to close 100 stores in the coming months, with loss-making Morrisons Daily convenience stores among those affected. The supermarket chain, which currently operates approximately 1,700 such outlets, cited rising operational costs—specifically National Living Wage increases and employer National Insurance contributions—as the primary drivers for the closures, according to reports from the BBC and the Express.
Which Morrisons Daily stores are closing?
While the retailer has earmarked 100 sites for closure, it has only publicly identified seven specific locations at this time. According to the company, these stores include:
- Fairfax Avenue, Hull
- Esk Close, Guisborough
- Zetland Road, Loftus
- Stokesley High Street, Middlesbrough
- Queen Street, Redcar
- Middle Street, South Driffield
- Woodthorpe, York
The company is currently undergoing consultation processes for affected staff. Morrisons has stated it will attempt to secure alternative roles for employees impacted by the redundancies.
Despite closing around 100 convenience stores, Morrisons continues to expand its footprint in other areas. The retailer confirmed it launched 30 new Morrisons Daily franchise stores during the same quarter it announced these closures.
Why is Morrisons closing these stores?
The closures are a component of a £1 billion turnaround strategy aimed at stabilizing the company’s finances. Morrisons achieved £48 million in cost savings in its most recent quarter, but the retailer faces what it describes as a “highly competitive” grocery market.
Data provided by the retailer shows that total sales grew by 1.7% to £4 billion for the 13 weeks ending April 26. This figure represents a deceleration from the 2.6% growth recorded in the previous quarter. Similarly, like-for-like sales growth slowed to 2.2% from 2.8%.
How does this affect the UK grocery market?
Morrisons currently holds the position of the sixth-largest supermarket in the UK. The company has seen its market share decline in recent years, prompting CEO Rami Baitieh to focus on a strategy centered on delivering value to customers. While the firm is cutting its convenience portfolio, it maintains plans to open hundreds of new franchise sites in the coming years.
The Government has characterized the closures as a commercial matter for the retailer, though it acknowledged that the situation represents a “concerning time” for the employees and families involved.
If you are an employee affected by store closures, check your contract for redundancy consultation terms. Retailers are legally required to follow specific procedures regarding notice periods and the offer of alternative employment within the company.
Frequently Asked Questions
- Are all 100 closing stores identified?
- No. As of the latest update, Morrisons has only confirmed the locations of seven specific sites slated for closure.
- Why are these specific stores closing?
- Morrisons attributes the closures to rising costs, specifically mentioning increases to the National Living Wage and employer National Insurance contributions.
- Is Morrisons still opening new stores?
- Yes. The retailer added 30 new Morrisons Daily franchise stores in the last quarter and continues to target further expansion in the convenience sector.
- Will staff be made redundant?
- Morrisons has stated that hundreds of positions are at risk, but the company is currently in consultation and aims to offer alternative roles to those affected.
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