Morrisons Store Closures
Morrisons plans to close 100 UK stores by 2026 due to rising operating costs.
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Morrisons is closing 100 stores across the UK, with seven locations now confirmed for the first wave of shutdowns. The closures target its
CEO Rami Baitiéh called it a
Seven Stores Named as First Closures Begin
The seven confirmed locations are all in northern England. They include Fairfax Avenue in Hull, Esk Close in Guisborough, Zetland Road in Loftus, Stokesley High Street in Middlesbrough, Queen Street in Redcar, Middle Street in South Driffield, and Woodthorpe in York. Some will shut as early as August 2026, according to Examiner Live.
All 100 targeted stores are part of the Morrisons Daily convenience network. Most were inherited when Morrisons bought the collapsed McColl\'s Retail Group for £190m in May 2022. Around 1,700 Morrisons Daily stores will remain open after the closures, according to Cambridge News.
Rising Government Costs Pushed Loss-Making Stores Over the Edge
Morrisons blames the closures squarely on government policy. The National Living Wage rose 6.7% and employer National Insurance contributions climbed to 15%. Together, those changes cost Morrisons roughly £75m a year. Baitiéh described the burden as an "avalanche of costs" that made small-format stores impossible to run profitably, according to Leeds Live.
This is not the first round of cuts. In March 2025, Morrisons axed 300 jobs and closed 52 cafés and 17 convenience stores for the same reasons. The government has responded by calling the latest closures a "commercial decision" for Morrisons, while acknowledging it is a "concerning time" for workers, according to Liverpool Echo.
Hundreds of Jobs at Risk as Consultations Continue
Morrisons has confirmed that hundreds of staff are at risk of redundancy. Consultations are still ongoing. The company says it will try to find alternative roles for affected workers, but some stores are in areas far from other Morrisons sites, making redeployment difficult, according to Gazette Live.
Local politicians are also raising a separate concern. Several Morrisons Daily stores house Post Office counters that communities rely on for banking and parcel services. Hull North MP Diana Johnson has actively campaigned against the closure of the Fairfax Avenue branch for exactly this reason, according to Examiner Live.
Sales Still Growing But Morrisons Falls to Sixth Place
Morrisons is not in freefall. In its most recent quarter, total sales rose 1.7% to £4bn and like-for-like sales grew 2.2% — its 14th consecutive quarter of growth. The chain has also hit £942m of its £1bn cost-savings target, according to Cambridge News.
Even so, the chain has slipped to sixth place in the UK grocery market with roughly 8.3% market share, now trailing Lidl. The store closure strategy reflects a wider shift: while cutting 100 owned convenience stores, Morrisons opened 30 new franchise sites in Q2 2026 alone. The company is betting on a leaner, franchise-led model to rebuild its position, according to Leeds Live.
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