Morrisons Daily Franchise to Press Ahead with Franchise Expansion Despite Closure of 100 Convenience Stores
Morrisons Daily has reaffirmed its commitment to franchise growth, revealing plans to open hundreds more franchise-operated convenience stores in the coming years despite announcing the closure of around 100 loss-making company-owned outlets.
The supermarket giant said the closures form part of an ongoing review of its convenience estate and will primarily affect stores acquired through its takeover of the former McColl’s business in 2022.
A spokesperson for Morrisons said expanding the convenience arm remains a key pillar of the retailer’s long-term growth strategy.
The retailer currently operates around 1,700 convenience stores across the UK and opened more than 120 new franchise locations during the last year alone. Morrisons confirmed that further franchise expansion is planned throughout 2026, with ambitions to significantly grow the network over the next several years.
The spokesperson said: “Expansion of our convenience business is a core part of Morrisons’ growth strategy. We continue to see the opportunity to open hundreds more franchise convenience stores in the years ahead.”
Portfolio Review Leads to Store Closures
The decision to close approximately 100 stores follows a detailed review of the company-owned convenience estate. Morrisons said the affected locations have faced trading challenges for a number of years and have remained unprofitable despite efforts to improve performance.
Since acquiring the McColl’s network four years ago, the retailer has invested heavily in rebranding stores under the Morrisons Daily banner and upgrading operations across the estate. However, some locations have struggled to achieve sustainable profitability.
According to the company, rising operating costs and wider economic pressures have made it increasingly difficult for certain stores to recover financially.
The spokesperson noted that government-driven cost increases have further impacted the viability of some outlets, prompting the retailer to take what it described as a “tough but necessary” decision.
Impact on Employees
The proposed closures place a number of convenience store employees at risk of redundancy, with a formal consultation process expected to begin shortly.
Morrisons said it will work closely with affected colleagues and seek to redeploy staff wherever possible across its wider business, including supermarket, logistics and manufacturing operations.
The retailer highlighted its strong track record of finding alternative roles for employees impacted by previous restructuring programmes.
Morrisons Daily Franchise Growth Remains a Priority
While the closure programme will reduce the number of underperforming company-operated stores, Morrisons believes its continued investment in franchise development will strengthen the overall convenience business.
The retailer said the combination of removing loss-making locations and opening new franchise sites will allow it to focus resources on stronger-performing stores while continuing to expand its presence in local communities.
For franchise operators, the announcement reinforces Morrisons’ confidence in its convenience franchise model, which has become an increasingly important route for growth as the business looks to expand its reach without relying solely on company-owned locations.
The strategy signals that, despite challenges within parts of its legacy estate, Morrisons remains firmly committed to growing its franchise network and sees substantial opportunities for expansion across the UK convenience sector.
Keep updated with the latest Franchise Industry News. Know more. Grow more.
