Research suggests Morrisons, a UK supermarket chain, plans to close 52 cafes and 17 convenience stores, affecting 365 jobs, as part of cost-cutting measures announced on March 24, 2025.
- Research suggests Morrisons, a UK supermarket chain, plans to close 52 cafes and 17 convenience stores, affecting 365 jobs, as part of cost-cutting measures announced on March 24, 2025.
- It seems likely that these closures are due to services being uneconomical, with the company aiming to redirect funds to more profitable areas amid competition from discounters like Aldi.
- The evidence leans toward most affected employees being redeployed, but some redundancies are expected, with specific closures in Kent including a cafe in Tonbridge and a Market Kitchen in Gravesend.
- An unexpected detail is that despite recent sales growth, Morrisons is still facing cost pressures from increased National Insurance and minimum wage, prompting these strategic changes.
When and Why
Morrisons announced on March 24, 2025, that it will close 52 cafes and 17 convenience stores, along with other services like Market Kitchens and counters, to cut costs and focus on customer-valued areas. The closures are expected over the next few months, driven by rising operational costs and competition from discount retailers.
Impact on Jobs
Approximately 365 jobs are at risk, but Morrisons plans to redeploy most affected staff to other roles, aiming to minimize redundancies.
Specific Locations
In Kent, the closures include the Morrisons Daily in Higham Lane, Tonbridge, and the Morrisons Market Kitchen in Coldharbour Road, Gravesend, impacting local communities.
Survey Note: Comprehensive Analysis of Morrisons Cafe and Store Closures
Overview of Morrisons' Recent Announcement
On March 24, 2025, Morrisons, the UK's fourth-largest supermarket chain, announced plans to close 52 cafes, 17 convenience stores, and other in-store services, putting approximately 365 jobs at risk. This decision, detailed in BBC News: Morrisons to close 52 cafes and 17 convenience stores, is part of a broader strategy to cut costs and redirect resources to more profitable areas of the business. The closures come amid increased competition from discount retailers like Aldi and Lidl, with Aldi overtaking Morrisons as the fourth-largest supermarket in 2022, as noted in The Guardian: Morrisons says more than 300 jobs at risk.
Background and Context
Morrisons, founded in 1899 and headquartered in Bradford, West Yorkshire, operates over 490 stores and employs around 110,000 people. The company was acquired by Clayton Dubilier & Rice, a US private equity firm, in 2021 for approximately £7 billion. Recently, it has faced significant market challenges, with discount supermarkets gaining ground. Despite a 4.1% sales increase and earnings rising to £835 million for the year ending October 27, 2024, as reported in The Mirror: Morrisons full list of 17 stores and 52 cafes set to close, Morrisons is grappling with rising costs, including employer National Insurance contributions and minimum wage increases.
Details of the Closures
The closures include:
- 52 cafes
- 17 Morrisons Daily convenience stores
- All 18 Market Kitchens
- 13 florists
- 35 meat counters
- 35 fish counters
- 4 pharmacies
This comprehensive list, sourced from GB News: Store closures: Morrisons to close 17 shops and 52 cafes, reflects a wide-ranging review that found these services were "significantly out of line with usage, volumes or the value that customers place on them."
Reasons for the Decision
Morrisons cited cost-effectiveness as the primary reason, stating that the services were costing more to run than the revenue they generated. This decision is also influenced by recent significant cost increases, such as rises in employer National Insurance and the minimum wage, as mentioned in Daily Mail: Major supermarket closes 17 stores and axes 52 cafes. The company aims to redirect cash to other parts of the business to support growth and mitigate these financial pressures.
Impact on Employees
The closures put approximately 365 jobs at risk, but Morrisons expects that a significant majority of affected staff will be redeployed to suitable roles elsewhere in the company. This approach is intended to minimize redundancies, as stated by Chief Executive Rami Baitiรฉh in Metro News: Morrisons to close 17 stores and 52 cafes. However, the exact number of redundancies and the redeployment process will depend on individual circumstances and availability of roles.
Specific Closures in Kent
In Kent, the closures include:
- Morrisons Daily convenience store in Higham Lane, Tonbridge
- Morrisons Market Kitchen in Coldharbour Road, Gravesend
This information, from Kent Online: Morrisons store in Kent earmarked for closure, highlights the local impact, with the company noting these closures as part of its plan to mitigate cost increases. The closures in Kent are expected to affect local employment and community services, with potential reactions from residents and employees yet to be fully documented.
Reactions and Statements
Rami Baitiรฉh expressed regret over the closures, stating, "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." This sentiment, echoed in Manchester Evening News: Full list of Morrisons closures, underscores the company's focus on long-term sustainability. Customer and employee reactions, particularly in affected areas like Kent, may include disappointment over lost services and concern for job security, though specific comments were not detailed in the provided sources.
Future Plans and Strategy
Morrisons is committed to investing in areas that customers value, such as its Market Street proposition, which offers fresh produce and specialty foods. The company is also focusing on improving its online presence and delivery services, as part of its "programme of renewal" entering its second year, as mentioned in Express & Star: Morrisons to shut 52 cafes and 17 stores. Additionally, Morrisons is enhancing its loyalty program and offering competitive pricing to attract and retain customers, aiming to strengthen its position in the competitive UK supermarket landscape.
Unexpected Detail: Financial Performance vs. Cost Pressures
Despite recent sales growth and improved earnings, Morrisons is still facing significant cost pressures, which is an unexpected detail given the company's financial performance. This juxtaposition highlights the retail industry's challenges, where even profitable companies must make tough decisions to remain competitive, as seen in The Independent: Morrisons: Full list of store and cafe closures.
Table: Summary of Closures and Impact
Service Type | Number Closing | Impact on Jobs |
---|---|---|
Cafes | 52 | Part of 365 at risk |
Convenience Stores | 17 | Part of 365 at risk |
Market Kitchens | 18 | Part of 365 at risk |
Florists | 13 | Part of 365 at risk |
Meat Counters | 35 | Part of 365 at risk |
Fish Counters | 35 | Part of 365 at risk |
Pharmacies | 4 | Part of 365 at risk |
This table, based on multiple sources, provides a clear overview of the scale of closures and their potential impact on employment.
Conclusion
Morrisons' decision to close 52 cafes and 17 stores, announced on March 24, 2025, reflects a strategic shift to address cost pressures and competition. While the immediate impact includes job risks and community disruptions, particularly in areas like Kent, the company's focus on redeployment and future investments aims to mitigate these effects. This move underscores the broader challenges facing UK supermarkets and sets the stage for Morrisons' efforts to renew and reinvigorate its business model.
- BBC News: Morrisons to close 52 cafes and 17 convenience stores
- The Guardian: Morrisons says more than 300 jobs at risk
- Kent Online: Morrisons store in Kent earmarked for closure
- GB News: Store closures: Morrisons to close 17 shops and 52 cafes
- Daily Mail: Major supermarket closes 17 stores and axes 52 cafes
- Metro News: Morrisons to close 17 stores and 52 cafes
- Manchester Evening News: Full list of Morrisons closures
- Express & Star: Morrisons to shut 52 cafes and 17 stores
- The Independent: Morrisons: Full list of store and cafe closures
- The Mirror: Morrisons full list of 17 stores and 52 cafes set to close