Over the last few years, many retailers have been forced to close their doors. While most of us are probably sick of hearing the words “pandemic” and “Covid,” the harsh truth is that we have yet to realize the impact it has had on us.
As if the punch to our physical and mental health wasn’t enough, the crisis negatively impacted many businesses and a vast number of industries. What’s worse, brick-and-mortar shops were already dealing with a multitude of challenges imposed by e-commerce development.
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In 2024, U.S. retailers closed around 7,325 stores and opened 5,970, according to Coresight Research. This year, the research and advisory firm projects about 15,000 U.S. store closures, versus just 5,800 openings.
A similar trend is happening across the pond. Last year, the UK saw the second-fewest closures in a decade. However, the number of openings also declined, according to a global professional services firm, PWC.
In addition to economic challenges, retailers are also seeing a shift in consumer preferences. For convenience, consumers are choosing retail plazas over main streets.
One type of business directly influences another nearby.
With many banks, pharmacies, and pubs on main streets closing, consumers have less reason to visit, which leads to declining sales and more closures.
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Morrisons confirms it’s closing 17 stores, cutting 3,600 jobs
A 125-year-old supermarket giant, Morrisons, recently confirmed it will close 17 stores and cut 3,600 jobs.
The closures, revealed earlier this year, come as no surprise, since the Bradford-headquartered retailer had seen sales decline over the years.
Related: Huge travel brand closes stores, posts big profits
In 2021, Morrisons was acquired by a U.S. private equity firm, Clayton, Dubilier & Rice, ending the company’s 54-year listing on the London Stock Exchange.
For the 12 months ended October 27, 2024, the supermarket giant reported a pre-tax profit of £2.1 billion ($2.8 billion), reports City AM, citing new accounts filed with Companies House.
The profit follows Morrisons’ pre-tax loss of £919 million in the prior 12 months and £1.3 billion in the year before that.
Meanwhile, Morrisons reduced the number of its employees from 104,819 to 101,144.
Jobs lost by role:
- The number of store employees dropped by 2,750 to 85,508.
- Manufacturing jobs plunged by 253 to 7,612.
- Distribution staff plummeted by 359 to 5,424.
- Head office employees decreased by 313 to 2,600.
Moreover, these layoffs come on the heels of 8,800 job cuts in 2024 and a revenue drop to £17 billion from £18.3 billion.
According to GB News, here is the full list of already closed Morrisons stores:
- Gorleston Lowestoft Road
- Shenfield 214 Hutton Road
- Peebles 3-5 Old Town
- Poole Waterloo Estate
- Tonbridge Higham Lane Est
- Romsey The Cornmarket
- Stewarton Lainshaw Street
- Selsdon Featherbed Lane
- Great Barr Queslett R
- Whickham Oakfield Road
- Worle
- Goring-By-Sea Strand Para
- Woking Westfield Road
- Wokingham 40 Peach Street
- Exeter 51 Sidwell Street
- Bath Moorland Road
- Haxby Village
Morrisons fights huge pile of debt, cyberattack and more
Large supermarket chains across the world often close underperforming locations while at the same time opening new ones. For vast businesses with hundreds of stores, closures don’t necessarily indicate the company is struggling.
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However, as noted above, the UK’s fifth-largest grocer struggled to regain market share over the last few years. Furthermore, the Telegraph reported in March 2024 that Morrisons had a net debt of £8.6 billion.
In May 2024, Morrisons started a £1 billion debt buyback plan and managed to restructure its debt by nearly 40%. Through various actions, including the sale of its petrol (gas) stations in a £1.8 billion deal in January, the retailer managed to bring its outstanding debt to £3.8 billion.
In November 2024, the supermarket chain suffered another blow — a cyberattack on its technology provider, Blue Yonder, which severely disrupted its supply chain management systems. The attack disabled the company’s ability to manage product availability, particularly fresh produce, causing a drop in sales during seasonal shopping, writes Fresh Talk Daily.
Earlier this year, the company announced the closure of 52 cafes, all 18 of its Market Kitchens, 17 convenience stores, 35 fish counters, 35 meat counters, 13 florists, and four pharmacies, as part of its restructuring effort.
Like many other retailers, the supermarket giant has faced challenges over the last couple of years. However, its operational changes and first profits since its takeover suggest a possible recovery.
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“Morrisons has bounced back strongly from the disruption of the Blue Yonder cyberattack in November 2024,” Chief Executive Rami Baitiéh said, as reported by Reuters.
Baitiéh added that the retailer managed to profit by concentrating on price, promotions, and rewarding customer loyalty.
“With inflation driving subdued consumer sentiment, value remains at the forefront of customers’ minds,” he said.
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