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More than 300 jobs at risk as Morrisons shuts convenience stores, cafes and counters Morrisons to cut 300 jobs as it shuts convenience stores, cafes and counters
(31 minutes later)
Supermarket chain said it was mitigating extra cost from rise in employer national insurance contributions Supermarket chain said it was mitigating extra cost amid rise in employer national insurance contributions
Morrisons has put more than 300 jobs at risk as it shuts cafes, convenience stores and food counters as retailers grapple with rising labour costs.Morrisons has put more than 300 jobs at risk as it shuts cafes, convenience stores and food counters as retailers grapple with rising labour costs.
The supermarket chain said on Monday that it plans to close 52 cafes, 17 convenience stores, all 18 of its Market Kitchen hot food counters, 13 florists, 35 meat counters, 35 fish counters and four pharmacies.The supermarket chain said on Monday that it plans to close 52 cafes, 17 convenience stores, all 18 of its Market Kitchen hot food counters, 13 florists, 35 meat counters, 35 fish counters and four pharmacies.
While many employees will be affected by the move, 365 roles are expected to be permanently axed. Most of the job losses are predicted to be prompted by the convenience store closures.While many employees will be affected by the move, 365 roles are expected to be permanently axed. Most of the job losses are predicted to be prompted by the convenience store closures.
The company said it was seeking to “optimise its operations and to help mitigate recent significant cost increases”.The company said it was seeking to “optimise its operations and to help mitigate recent significant cost increases”.
The move echoes cuts from its rival grocery chain Sainsbury’s, and comes as Britain’s biggest retailers have warned they could be forced to cut thousands of roles and raise prices this year as a result of measures in Labour’s budget to increase employer national insurance contributions by a projected £25bn and raise the national minimum wage by 6.7%.The move echoes cuts from its rival grocery chain Sainsbury’s, and comes as Britain’s biggest retailers have warned they could be forced to cut thousands of roles and raise prices this year as a result of measures in Labour’s budget to increase employer national insurance contributions by a projected £25bn and raise the national minimum wage by 6.7%.
The Morrisons chief executive, Rami Baitiéh, has complained to the UK government that last year’s budget had exacerbated “an avalanche of costs” for businesses.The Morrisons chief executive, Rami Baitiéh, has complained to the UK government that last year’s budget had exacerbated “an avalanche of costs” for businesses.
Late last year, he asked what ministers could do to mitigate employers’ national insurance changes, the minimum wage rise and business rates increases. National insurance changes alone are predicted to cost Morrisons about £75m.Late last year, he asked what ministers could do to mitigate employers’ national insurance changes, the minimum wage rise and business rates increases. National insurance changes alone are predicted to cost Morrisons about £75m.
On Monday he said: “The changes we are announcing today are a necessary part of our plans to renew and reinvigorate Morrisons and enable us to focus our investment into the areas that customers really value and that can play a full part in our growth.” On Monday Baitiéh said: “The changes we are announcing today are a necessary part of our plans to renew and reinvigorate Morrisons and enable us to focus our investment into the areas that customers really value and that can play a full part in our growth.”
“We do not take lightly the disruption and uncertainty they will cause to some of our colleagues,” Baitiéh added. “We will of course take particular care to look after all of them well through the coming changes.”“We do not take lightly the disruption and uncertainty they will cause to some of our colleagues,” Baitiéh added. “We will of course take particular care to look after all of them well through the coming changes.”
He said that areas of its Market Street business model – with expert butchers, bakers and fishmongers, which have been a core part of Morrisons since the 1980s and were seen as a point of difference from its rivals – were “simply uneconomic”. He said that areas of its “market street” business model – with expert butchers, bakers and fishmongers, which have been a core part of Morrisons since the 1980s and were seen as a point of difference from its rivals – were “simply uneconomic”.
Morrisons was bought for £7bn by the US private equity group Clayton, Dubilier & (CD&R) in 2021. Morrisons was bought for £7bn by the US private equity group Clayton, Dubilier & Rice in 2021.
In January, Sainsbury’s said it would cut 3,000 jobs in the UK through the closure of its hot food counters and cafes and by reducing senior management roles by a fifth, amid rising labour costs.In January, Sainsbury’s said it would cut 3,000 jobs in the UK through the closure of its hot food counters and cafes and by reducing senior management roles by a fifth, amid rising labour costs.
The job cuts were part of Sainsbury’s previously announced efforts to slash £1bn from costs as the business was facing “a particularly challenging cost environment”.The job cuts were part of Sainsbury’s previously announced efforts to slash £1bn from costs as the business was facing “a particularly challenging cost environment”.
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After the announcement by Sainsbury’s, a Downing Street spokesperson said that “difficult decisions” in the budget would help pave the way for economic growth.After the announcement by Sainsbury’s, a Downing Street spokesperson said that “difficult decisions” in the budget would help pave the way for economic growth.
Full list of closuresFull list of closures
CafesBradford – ThornburyCafesBradford – Thornbury
Paisley – Falside Road Paisley – Falside Road
London – Queensbury London – Queensbury
Portsmouth Portsmouth
Newcastle – Great Park Newcastle – Great Park
Banchory – North Deeside Road Banchory – North Deeside Road
Manchester – Poplar Street, Failsworth Manchester – Poplar Street, Failsworth
Blackburn – Railway Road Blackburn – Railway Road
Leeds – Swinnow Road Leeds – Swinnow Road
London – Wood Green London – Wood Green
Kirkham – Poulton Street Kirkham – Poulton Street
Lutterworth – Bitteswell Road Lutterworth – Bitteswell Road
Birmingham – Stirchley Birmingham – Stirchley
Leeds – Horsforth Leeds – Horsforth
London – Erith London – Erith
Crowborough Crowborough
Bellshill – John Street Bellshill – John Street
Dumbarton – Glasgow Road Dumbarton – Glasgow Road
East Kilbride – Lindsayfield East Kilbride – Lindsayfield
East Kilbride – Stewartfield East Kilbride – Stewartfield
Glasgow – Newlands Glasgow – Newlands
Largs – Irvine Road Largs – Irvine Road
Troon – Academy Street Troon – Academy Street
Wishaw – Kirk Road Wishaw – Kirk Road
Newcastle – UT Cowgate Newcastle – UT Cowgate
Northampton – Kettering Road Northampton – Kettering Road
Bromsgrove – Buntsford industrial ark Bromsgrove – Buntsford industrial ark
Solihull – Warwick Road Solihull – Warwick Road
Brecon – Free Street Brecon – Free Street
Caernarfon – North Road| Caernarfon – North Road|
Hadleigh Hadleigh
London – Hatch End, Harrow London – Hatch End, Harrow
High Wycombe – Temple End High Wycombe – Temple End
Leighton Buzzard – Lake Street Leighton Buzzard – Lake Street
London – Stratford London – Stratford
Sidcup – Westwood Lane Sidcup – Westwood Lane
Welwyn Garden City – Black Fan Road Welwyn Garden City – Black Fan Road
Warminster – Weymouth Street Warminster – Weymouth Street
Oxted – Station Yard Oxted – Station Yard
Reigate – Bell Street Reigate – Bell Street
Borehamwood Borehamwood
Weybridge – Monument Hill Weybridge – Monument Hill
Bathgate Bathgate
Erskine – Bridgewater shopping centre Erskine – Bridgewater shopping centre
Gorleston – Blackwell Road Gorleston – Blackwell Road
Connah’s Quay Connah’s Quay
Mansfield Woodhouse Mansfield Woodhouse
Elland Elland
Gloucester – Metz Way Gloucester – Metz Way
Watford – Ascot Road Watford – Ascot Road
Littlehampton – Wick Littlehampton – Wick
Helensburgh Helensburgh
Market KitchensAberdeen – King StreetMarket KitchensAberdeen – King Street
London – Canning Town London – Canning Town
London – Camden Town London – Camden Town
Eccles – Irwell Place Eccles – Irwell Place
Stoke – Festival Park Stoke – Festival Park
Lincoln – Triton Road Lincoln – Triton Road
Tynemouth – Preston Grange Tynemouth – Preston Grange
Nottingham – Netherfield Nottingham – Netherfield
Leeds – Kirkstall Leeds – Kirkstall
Milton Keynes – Westcroft Milton Keynes – Westcroft
Little Clacton – Centenary Way Little Clacton – Centenary Way
Gravesend – Coldharbour Road Gravesend – Coldharbour Road
Cheltenham – Up Hatherley Cheltenham – Up Hatherley
Basingstoke – Thorneycroft Basingstoke – Thorneycroft
Brentford – Waterside Brentford – Waterside
Birmingham – Edgbaston Birmingham – Edgbaston
Verwood Verwood
Kirkby Kirkby
Morrisons DailysGorleston – Lowestoft RoadMorrisons DailysGorleston – Lowestoft Road
Peebles – 3-5 Old Town Peebles – 3-5 Old Town
Shenfield – 214 Hutton Road Shenfield – 214 Hutton Road
Poole – Waterloo estate Poole – Waterloo estate
Tonbridge – Higham Lane estate Tonbridge – Higham Lane estate
Romsey – The Cornmarket Romsey – The Cornmarket
Stewarton – Lainshaw Street Stewarton – Lainshaw Street
Selsdon – Featherbed Lane Selsdon – Featherbed Lane
Haxby – Village Haxby – Village
Great Barr – Queslett Road Great Barr – Queslett Road
Whickham – Oakfield Road Whickham – Oakfield Road
Weston-super-Mare – Worle Weston-super-Mare – Worle
Goring-by-Sea – Strand Parade Goring-by-Sea – Strand Parade
Woking – Westfield Road Woking – Westfield Road
Wokingham – 40 Peach Street Wokingham – 40 Peach Street
Exeter – 51 Sidwell Street Exeter – 51 Sidwell Street
Bath – Moorland Road Bath – Moorland Road
FloristsAberdeen – King StreetFloristsAberdeen – King Street
London – Canning Town London – Canning Town
Birmingham – Stirchley Birmingham – Stirchley
Bradford – Enterprise 5 Bradford – Enterprise 5
Sunderland – Doxford Park Sunderland – Doxford Park
St Helens – Boundary Road St Helens – Boundary Road
Swinton – Swinton Hall Road Swinton – Swinton Hall Road
Sheffield – Meadowhead Sheffield – Meadowhead
Evesham – Four Pool estate Evesham – Four Pool estate
Newcastle-under-Lyme – Goose Street Newcastle-under-Lyme – Goose Street
Rubery – Bristol Road South Rubery – Bristol Road South
St Albans – Hatfield Road St Albans – Hatfield Road
Sheldon Sheldon
PharmaciesBradford – VictoriaPharmaciesBradford – Victoria
Blackburn – Railway Road Blackburn – Railway Road
London – Wood Green London – Wood Green
Birmingham – Small Heath Birmingham – Small Heath