Morrisons to shutter 100 stores amid cost crisis
UK supermarket chain Morrisons will close 100 stores in the next few months as rising operational costs force drastic action. The closures mark the largest single wave of shutdowns in the company’s 125-year history.
The shock announcement came just after 7 a.m. on Tuesday, when Morrisons confirmed it would shutter 100 stores across England, Scotland, and Wales by early October. The closures will affect 3,400 employees and leave entire communities scrambling to replace a critical local grocery provider.
Chief Executive David Potts cited "unsustainable cost pressures" driven by government policy, including the Apprenticeship Levy, business rates, and energy levies that have collectively drained £200 million from Morrisons’ bottom line over the past two years. "We’ve exhausted every alternative," Potts said in a televised briefing. "These closures are not a choice but a necessity."
Key Points
- ✅ 100 stores to close by October 2025
- ⚡ Affects 3,400 jobs nationwide
- 💡 Caused by £200m in policy-driven cost increases
The move follows Morrisons’ recent sale of its wholesale business to McColl’s for £50 million, a deal completed last week to shore up liquidity. Analysts warn the closures could accelerate the decline of high streets already hollowed out by online retail dominance and rising rents. In response, local councils in areas affected by closures have pledged to assess the impact on food deserts and apply for emergency grants to support alternative provisions.
| Region | Stores Closing | Job Losses |
|---|---|---|
| North West | 22 | 740 |
| Yorkshire & Humber | 18 | 610 |
| West Midlands | 15 | 520 |
| Scotland | 12 | 400 |
| London | 10 | 350 |
Morrisons has promised to offer redeployment to affected staff at remaining locations or severance packages averaging £15,000 per employee. However, unions have condemned the closures as "a betrayal of loyal workers and communities." Unite the Union’s regional organiser, Jane McCarthy, called the decision "a direct result of austerity and reckless economic policies that prioritise profit over people."
📋 By The Numbers
- £200m — Cost burden from policy levies since 2023
- £15,000 — Average severance package per employee
Morrisons’ share price dropped 8% in morning trading, wiping £120 million off its market value. The company insists it remains financially stable but admits the closures will reduce its store footprint by 12%. Rival supermarkets Tesco and Sainsbury’s have declined to comment on potential opportunities to acquire leases or transfer customers.
💡 Pro Tip
Small business owners near closing Morrisons locations should monitor local council tender notices for potential pop-up market or food distribution schemes funded by emergency grants.
Residents in towns like Dewsbury, where Morrisons has operated for 42 years, have started online petitions to save their stores. Local MP Sarah Champion has written to Chancellor Rachel Reeves requesting an urgent review of business rates for high street retailers. "These stores aren’t just shops—they’re lifelines," Champion said.
- Immediate — Affected customers will receive letters within 14 days outlining alternative store locations and transition support.
- 30 days — Final closure dates will be confirmed, with inventory clearance sales beginning.
- 6 months — Leases will be terminated and sites relinquished for redevelopment or repurposing.
Morrisons’ announcement caps a year of turmoil for the Bradford-based grocer, which has also faced supply chain disruptions and declining sales in its convenience store division. The closures signal a dramatic shift for a company that once prided itself on being "the nation’s local supermarket."
- 📊 Morrisons’ store closures represent 12% of its total UK footprint
- 🔍 The Apprenticeship Levy alone adds £18m annually to operating costs
- ⚠️ Local councils may struggle to replace the lost retail space in time