0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Morrisons Plans Store Closures and Job Cuts In Pursuit of £1bn Cost Savings

Written by: Julie Palmer

Published: 9th September 2015

Morrisons Plans Store Closures and Job Cuts In Pursuit of £1bn Cost SavingsThe supermarket chain Morrisons is to close a number of UK stores and shed hundreds of jobs as it aims to cut costs by around £1 billion.

A total of 11 Morrisons stores are set to close in the coming weeks, with around 900 employees expected to lose their jobs as a result.

The locations of the 11 stores have not been revealed with company bosses in the process of informing the individuals whose jobs are to go of the situation.

“This is a difficult decision but one which we cannot see any way through to make those stores viable,” said David Potts, Morrisons’ chief executive.

In addition to its planned store closures, Morrisons revealed this week that it will sell a total of 140 convenience stores around the UK in a move expected to raise £25 million in cash.

The M Local stores are being sold after consideration was given to their position within the supermarket chain’s overall business as part of a broad operational review initiated in March of this year.

“That review concluded that M local would have required significant further investment in new sites, plus additional capital expenditure and lease commitments, to reach profitability,” a statement on the matter explained this week.

While the M Local stores will be rebranded and no longer owned by Morrisons, their 2,300 staff members are all set to keep their jobs as the outlets continue to trade under new ownership.

“Convenience is a large and growing channel in UK food retailing. Morrisons learnt much from its entry into the market, but M local was unable to scale,” said David Potts, who took up his role as Morrisons CEO in March.

The sale of its loss-making M Local stores is seen as an important step in improving competitiveness across the Morrisons business as the supermarket battles for customers with the likes of Tesco, Asda and Sainsbury’s, as well as with discounters including Aldi and Lidl.

“Morrisons stores are old-fashioned, not as cutting edge as their rivals but they are dragging themselves into the modern age,” commented Julie Palmer, a retail analyst from the corporate recovery specialists Begbies Traynor.  

Julie Palmer

Julie Palmer
Regional Managing Partner

Join Julie Palmer on Linked In Follow Julie Palmer on Twitter

Julie is a vastly experienced business recovery specialist and advises directors and sole traders during times of financial insecurity. She is highly regarded across the industry and is a member of the Insolvency Practitioners Association and a Fellow of The Association of Business Recovery Professionals.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners