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Morrisons to cut 300 jobs as it shuts convenience stores, cafes and counters | |
(31 minutes later) | |
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 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”. | |
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 closures | Full list of closures |
CafesBradford – Thornbury | CafesBradford – 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 Street | Market 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 Road | Morrisons 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 Street | FloristsAberdeen – 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 – Victoria | PharmaciesBradford – Victoria |
Blackburn – Railway Road | Blackburn – Railway Road |
London – Wood Green | London – Wood Green |
Birmingham – Small Heath | Birmingham – Small Heath |