Seventeen Morrisons stores and 52 cafes are closing across the UK. In addition to the store closures and cafes, the supermarket chain has announced plans to shut all 18 market kitchens, 13 florists, 35 meat counters, 35 fish counters, and four pharmacies. 

The grocer said its proposals came after a “wide-ranging review” found these services were not financially viable. While the majority of staff impacted by the closures will be redeployed within the company, Morrisons confirmed around 365 roles are at risk of redundancy. The restructuring also aims to offset substantial cost increases, such as the rise in employers' National Insurance contributions and the minimum wage.

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But it comes despite Morrisons reporting a 4.1% increase in sales for the year ending October 27, with profits climbing to £835 million from £751 million the previous 12 months, excluding the crucial Christmas trading period.

Rami Baitieh, Chief Executive of Morrisons, said: “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.

“Morrisons Cafes are rightly famous for their great quality well-priced food, their place in the local community and their appealing mix of traditional favourites alongside exciting new dishes. 

“In most locations, the Morrisons Cafe has a bright future, but a minority have specific local challenges and in those locations, regrettably, closure and re-allocation of the space is the only sensible option.

“Market Street is a beacon of differentiation for Morrisons and we remain committed to it. But as we modernise we are making some necessary changes to the areas of the model which are simply uneconomic. In some stores where we are closing counters or Cafes, we plan to work with third parties to provide a relevant specialist offer.

“Although these changes are relatively small in the context of the overall scale of the Morrisons business, we do not take lightly the disruption and uncertainty they will cause to some of our colleagues. We will of course take particular care to look after all of them well through the coming changes.”