Morrisons is planning to close 100 convenience stores over the coming months, blaming government policy choices for driving up costs across its retail operations.
The supermarket chain said the affected stores had been loss-making for some time, having been acquired as part of its McColls purchase back in 2022.
Morrisons attributed the worsening financial performance of these sites to increases in the national living wage and National Insurance contributions introduced by the government.
The planned closures follow an announcement last year in which Morrisons said it was shutting 52 cafes and 17 convenience stores, putting hundreds of jobs at risk across the business.
Last month, the chain also revealed that around 200 jobs were at risk at its Bradford headquarters, adding further pressure to its wider workforce.
Morrisons described the latest move as a tough but necessary decision, confirming that a staff consultation process would begin shortly following the proposal.
The company has not confirmed an exact number of jobs at risk, but it is understood that hundreds of employees across the affected stores face potential redundancy.
A Morrisons spokesperson said the business would try to find other opportunities for the staff affected by the closures, though no specific redeployment details were provided.
The chain currently operates around 1,700 Morrisons Daily convenience stores and opened more than 120 new franchise locations last year alone.
Morrisons said it had a robust expansion plan for 2026 and saw the opportunity to open hundreds more franchise stores in the coming years despite the current closures.
A government spokesperson said the store closures represented a commercial decision for Morrisons, adding that support was available for affected workers and their families through services including Acas.
Many retailers have argued they have faced a wave of extra costs since April last year, including higher employer National Insurance contributions and elevated minimum wage obligations.
Food and drink companies are also now charged for the cost to councils of recycling packaging under the government’s Extended Producer Responsibility programme, adding another layer of financial pressure.
Inflation has remained above the Bank of England’s 2% target, with newly published figures showing annual food price rises reached 3% in April, above the overall inflation rate of 2.8%.
Warnings have emerged that food inflation in the UK could reach 10% by the end of the year, partly due to the impact of the US-Israel conflict with Iran on global supply chains.
Multiple supermarket sources said this week that the government had urged retailers to voluntarily freeze the price of key groceries in return for an easing of certain regulations.
The suggestion drew a strong reaction from industry figures, including former Sainsbury’s boss Justin King, who called it hypocritical for the Treasury to ask supermarkets to cap prices while its own policies were contributing to inflation.