The closures are part of wider efforts by the supermarket to cut costs and simplify the business

Hundreds of jobs are at risk after a major supermarket confirmed plans to close 100 convenience stores across the UK.

The retailer said rising costs had made it increasingly difficult to keep the loss-making shops open.

Morrisons announced on Thursday that it will shut 100 convenience stores that have been losing money, putting hundreds of jobs at risk.

The Bradford-based supermarket said rising costs linked to Government policies had made it harder to return the stores to profitability.

Retailers have faced higher costs in recent months following increases to employer National Insurance contributions and the National Living Wage.

Morrisons chief executive Rami Baitiéh previously described the impact as an "avalanche of costs".

The closures are part of wider efforts by the supermarket to cut costs and simplify the business.

Morrisons has already reduced a number of in-store services, including pharmacies, cafés, meat counters and florists.

Staff at the affected stores were informed of the plans on Thursday as consultations got under way. The retailer expects all of the stores to close over the coming months.

The stores earmarked for closure were all previously part of the McColl's convenience chain, which Morrisons bought out of administration for £190million in 2022.

The supermarket acquired 1,164 McColl's stores as part of the deal and later rebranded them as Morrisons Daily, investing heavily in the estate in an effort to improve performance.

Despite these efforts, the 100 stores being shut have struggled financially for several years and continued to lose money even after attempts to fix their problems.

"This situation has been exacerbated in more recent years by significant cost increases resulting from government policy choices, which have made returning these stores to profitability even more difficult," the company stated.

The move represents Morrisons' second attempt at convenience retail, following the failure of its M Local venture, which closed in 2015 after opening shops in costly high street locations.

A Morrisons spokesperson acknowledged the difficult impact on workers: "Regrettably, the proposal means that some of our Convenience store colleagues will now be at risk of redundancy and a consultation will commence shortly.

"We understand this will be difficult news for them and we will be providing these colleagues with all necessary support."

The company pledged to seek alternative positions for those facing job losses within its wider operations, including supermarkets, logistics and manufacturing divisions.

"This will include finding other opportunities for impacted colleagues elsewhere in the business wherever we can, in our supermarket, logistics and manufacturing operations, and we have a strong track record of achieving this historically," the spokesperson added.

Morrisons also committed to minimising disruption for shoppers by directing them to nearby stores and online services.

Despite the closures, Morrisons insisted its convenience business remains central to the company's growth plans.

The grocer currently operates around 1,700 Morrisons Daily shops, with approximately 700 run by franchisees.

Last year alone, the supermarket opened more than 120 new franchise outlets and has outlined ambitious targets for further expansion throughout 2026.

"We continue to see the opportunity to open hundreds more franchise convenience stores in the years ahead," the spokesperson said.

Going forward, the vast majority of new openings will be franchise-operated rather than company-owned, with Morrisons also exploring selling some existing company-run shops to franchise partners.

The company argued that combining store closures with new franchise additions would strengthen its overall convenience network.

"The combination of the proposed closure of loss making stores and the continued addition of attractive new franchise openings will enable us to concentrate on those stores which work best for customers," the spokesperson explained.

The convenience division has undergone considerable upheaval in recent months, including the sudden departure of convenience director Matt Heslop in February after less than twelve months in the position.

Mr Baitiéh's turnaround efforts have yielded some progress, with Morrisons reporting that its debt has fallen by 46 per cent since the restructuring programme commenced.