Morrisons shuts multiple stores and services, citing fierce competition from Aldi and Lidl.
Morrisons is set to shut 52 cafes, 17 convenience stores, and multiple in-store services, putting hundreds of jobs at risk as the supermarket giant scrambles to cut costs.
The move comes as Morrisons struggles to compete with budget supermarket rivals, with Aldi surpassing it in 2022 to become the UK’s fourth-largest supermarket chain. The company now faces intensifying price competition from Aldi and Lidl, prompting a major shake-up of its operations.
Embed from Getty ImagesJobs at Risk Amid Major Closures
Around 365 employees are at risk of redundancy, though Morrisons hopes to redeploy most affected staff.
The cuts will roll out over the next few months, impacting Morrisons Daily convenience stores with extended opening hours. Other closures include:
- 52 in-store cafes
- 35 meat counters
- 35 fish counters
- 13 florists
- 4 pharmacies
- All 18 Market Kitchens, which offered freshly prepared meals.
Morrisons currently employs 95,000 people across 500 supermarkets and 1,600 Morrisons Daily stores.
Cafes in London, Leeds, Portsmouth, and Glasgow are among those affected, while convenience stores across the UK, including Peebles, Woking, and Exeter, will also shut.
Morrisons CEO: “Necessary Changes for Future Growth”
Morrisons CEO Rami Baitiéh defended the closures, stating:
“These changes are necessary to renew and reinvigorate Morrisons, allowing us to invest in areas that customers value most and drive future growth.”
The company has also hinted at working with third-party vendors in some locations to replace lost services.
Supermarket War: Morrisons Struggles to Keep Up
Industry experts suggest Morrisons is tightening its operations to compete in an increasingly price-sensitive market.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, stated:
“Morrisons is scaling back on non-essential services and convenience stores as rivals prepare for a fresh round of cost-cutting. Aldi and Lidl are proving to be formidable competition.”
This shift echoes Sainsbury’s decision in January to shut down its remaining cafes, citing lack of customer demand.
As Morrisons fights to regain its footing, shoppers may soon see further changes as the supermarket adapts to survive in the ongoing budget supermarket war.
