A total of 3,617 jobs are at risk from the closures across the UK.
(Image: Getty)
Morrisons is preparing to close 13 of its cafes and two Morrisons Daily convenience stores in Scotland as part of cuts across the UK.
The closure come despite a return to profit for the first time since Morrisons’ 2021 private equity takeover. The latest closures will lead to a loss of around 3,600 jobs across the UK.
For the year ending October 27, 2024 the supermarket chain reported a pre-tax profit of £2.1 billion, a significant turnaround from losses of £919 million the previous year and £1.3 billion the year before that.
A substantial portion of their recent profit, £2.6 billion, was generated from the sale of its petrol forecourts to Motor Fuel Group. This comes after Gordon Brown criticised the resurgence of ‘poverty of 60 years ago’ as he makes one major demand.
While the forecourt sale significantly contributed to the profit rebound, Morrisons’ underlying performance also improved, with losses in continuing operations being halved to £538 million from £1.09 billion.
The chain recorded a 3.9 per cent increase in like-for-like sales and a 4.2% rise in total sales to £3.9 billion in the second quarter of its current financial year, reports the Mirror.
However, recent filings at Companies House indicate that the company has reduced its workforce from 104,819 to 101,144, impacting store staff, manufacturing, distribution, and head office roles.
Chief Executive Rami Baitieh stated that the focus remains on delivering value to customers in a challenging economic environment marked by inflation and subdued consumer spending.
In a previous announcement, the CEO remarked: “Against the backdrop of a challenging macro environment, with inflation driving subdued consumer sentiment, value remains at the forefront of customers’ minds.
“Throughout the first half, we’ve worked hard on helping customers through these challenges with a rigorous focus on price, promotions and meaningful rewards for loyalty.”
Earlier in the year, Morrisons made the decision to shut down 17 of its Morrisons Daily stores, culminating with the Haxby, North Yorkshire location closing on 14 May. The retail behemoth has also confirmed plans to close over 50 of its in-store cafés.
These shutdowns are indicative of a wider trend of cost-cutting measures sweeping through the supermarket sector. Competitors such as Aldi, Tesco, and Sainsbury’s have all announced workforce reductions in recent times, with Sainsbury’s additionally opting to close all of its in-store cafés.
Morrisons Cafe Closures Scotland
Paisley Falside Road.
Banchory North Deeside Road.
Bellshill John Street.
Dumbarton Glasgow Road.
East Kilbride Lindsayfield.
East Kilbride Stewartfield.
Glasgow Newlands.
Largs Irvine Road.
Troon Academy Street.
Wishaw Kirk Road.
Bathgate.
Erskine Bridgewater Shopping Centre.
Helensburgh.
Morrisons Daily Store Closures Scotland
Peebles Old Town.
Stewarton Lainshaw Street.