Morrisons to close 11 stores

Morrisons to close 11 stores

Morrisons is to close 11 stores following a 47% drop in its half yearly profits.

The Bradford-based supermarket chain has not revealed where the 11 stores will be located because managers are in the process of informing staff, but they are thought to be smaller-sized supermarkets.

The store closures will result in the loss of around 900 jobs.

Morrisons revealed the news today (10th September) at the same times as reporting a 47% drop in half-yearly pre-tax profit to £126m. Like-for-like sales also fell by 2.7% in the six months to 2nd August.

New chief executive, David Potts, said he regretted the proposed closure of their eleven stores.

"This is a difficult decision but one which we cannot see any way through to make those stores viable," he said.

Yesterday (9th September), Morrisons also announced it was selling 140 loss-making M convenience stores for £25m. The shops will be rebranded as My Local and the 2,300 staff kept on with 200 jobs created be opening 10 shops currently closed.

Potts has cut head office workers since his appointment in March and boosted shop floor staff numbers in a bid to create a better customer experience.

He said: "Morrisons will be an organisation that listens. During the first half, the new executive and leadership teams have been listening hard to colleagues, customers, suppliers and shareholders.

"They tell us there is a lot for us to do. The immediate priority is to deliver a better shopping trip to stabilise trading performance. Our six strategic priorities will then deliver improvement in the core supermarkets, where we have the greatest opportunity."

Morrisons has faced stiff competition, along with Tesco and Sainsbury’s, from rivals Lidl and Aldi recently.

The supermarket joined the Booksellers Association for the first time earlier in April this year.