Arabic version: موريسونز تعلن عن إغلاق 100 متجر بسبب ارتفاع التكاليف

Morrisons is planning to close 100 stores over the coming months, attributing the decision to rising costs linked to government policy choices. The supermarket chain indicated that the affected convenience stores, primarily acquired through its McColls acquisition in 2022, have been loss-making for some time.

According to BBC News, the difficulties have been exacerbated in more recent years by significant cost increases, including increases to the national living wage and National Insurance. This announcement follows last year’s closure of 52 cafes and 17 convenience stores, which also posed risks to hundreds of jobs.

The planned closures will likely lead to further job losses, although Morrisons has not specified the exact number of positions at risk. The company has stated that it will seek alternative opportunities for affected employees.

Morrisons operates approximately 1,700 Morrisons Daily convenience stores and has opened more than 120 franchise stores last year. While it has not disclosed the specific locations of the stores to be closed, the company has emphasized that these locations have struggled with profitability despite remedial action.

In light of ongoing inflation, which has seen food prices rise, the supermarket sector is under pressure. Recent figures indicate an annual food price inflation rate of 3% as of April, with predictions suggesting it could reach 10% by year-end due to various economic factors. Industry leaders have expressed frustration over government proposals for price freezes on essential groceries, arguing that such measures are hypocritical given the policies contributing to inflation.