Morrisons is set to close 132 McColl's convenience stores, putting 1,300 workers at risk of redundancy. The majority of the closures will take place this year, while 55 stores that include a post office counter will close next year. The retailer bought the McColl's chain out of administration in May. The locations set for closure are said to have no realistic prospect of making a profit in the medium term. Affected employees are expected to be offered alternative employment at a nearby McColl’s store, Morrisons store, logistics operation, or foodmaking centre.
McColl's currently operates 1,164 stores, 286 of which are Morrisons Daily stores. The chain has annual turnover of circa €1.4bn (£1.2bn), representing about 0.8% of the UK grocery market.
Joseph Sutton, Morrisons convenience, online and wholesale director, said: "We have a great deal of work to do but there's no question that McColl's is a business with strong potential. I'm confident that the combination of McColl's conveniently located stores and great colleagues together with Morrisons scale, brand, systems and fresh food expertise will lead to a transformation of the business. We very much regret the proposed closure of 132 loss-making stores but it is, very sadly, an important step towards the regeneration of the business."
