Morrisons is tightening its convenience store network and announcing the closure of 100 loss-making Morrisons Daily stores, in an attempt to mitigate the impact of an increasingly difficult economic environment for British retailers, caught between rising operating costs, inflation and rising staff costs.
The British retailer explained that the decision follows an internal review of the convenience network's performance, launched to identify stores no longer economically viable. The closures will affect only a few directly operated stores, while the approximately 700 franchised stores will be excluded from the plan.
This move confirms how the franchise model is becoming increasingly strategic for the British retailer, which has already announced its intention to continue investing in expanding this commercial formula.
Morrisons operates a total of around 1.700 Morrisons Daily stores in the UK, a network that has grown rapidly, especially after the rescue of the McColl's chain in 2022. That operation had allowed the group to significantly strengthen its presence in the convenience segment by converting numerous stores under the Morrisons Daily brand.
However, just a few years later, the British convenience store market is facing increasingly compressed margins and consumers who are much more attentive to their daily spending. This situation is pushing several retailers to rethink their retail networks, cutting back on less profitable spaces and focusing on formats considered more efficient.
Morrisons linked the decision mainly to rising operating and labor costs, factors that have significantly impacted the profitability of many small, local stores in recent months.
There are 14 Morrisons Daily stores in Cumbria, but the group has not yet clarified which stores will be affected by the plan, nor how many are directly operated or franchised.
The move, however, represents a further sign of the difficulties British retailers are facing in the convenience segment, a sector that had seen strong growth in the years following the pandemic but is now faced with weaker consumption, high costs, and growing competitive pressure.
