London, June 30, 2026, 09:18 BST
- Morrisons isn’t listed, but the shutdown plan offers investors a look at UK convenience cost pressure, with knock-on effects for retail landlords and listed supermarket names like Tesco (LON:TSCO) and J Sainsbury (LON:SBRY).
- Morrisons has listed seven Morrisons Daily sites in the first round of closures after announcing plans to close more than 100 convenience stores that are losing money.
- Small-store closures in Hull and Hemel Hempstead are causing a second-order risk, with hosted Post Office counters at some of those sites also at risk, according to campaign groups.
- Morrisons is shutting some of its company-run ex-McColl’s locations but keeps opening franchised Morrisons Daily stores.
Morrisons is facing pressure from locals in Hull and Hemel Hempstead as it moves to close some convenience stores, with residents pushing to keep Post Office counters open at affected sites. The grocer’s cuts are starting to reveal just how much local service is built into the UK grocery cost base.
Morrisons is shutting seven Morrisons Daily shops in its first round of named closures. The group is testing a local problem for investors here. These stores may lose money for Morrisons, but they still offer banking, parcel collection and bill payments for the area. That mix makes it tough for politicians, landlords and buyers to put a simple value on walking away.
| Local case | Store or counter at risk | Date or deadline | What is confirmed |
|---|---|---|---|
| Bricknell, Hull | Morrisons on Fairfax Avenue, with the Post Office counter inside | Morrisons plans to close in August; Hull Daily Mail says the Post Office counter will shut Aug. 9 unless a new operator steps in before July 10 | MP Diana Johnson backed a petition in Bricknell, warning locals are set to lose the Post Office counter with Morrisons shutting. |
| Grovehill, Hemel Hempstead | Morrisons Daily at Henry Wells Square and the area’s Post Office | Set to close July 12 | Local resident Alexander Bhinder launched a Change.org petition which now has 1,055 signatures; Grovehill’s community page cites more than 9,000 residents. |
| Wider Post Office pipeline | Post Office counters inside Morrisons in Bedford, Calne and Downend | Feedback runs through Oct. 23 | The Post Office consultation site is showing live notices for Morrisons branches in Avon Drive, Calne and Downend. |
Morrisons Daily has named closures across northern England so far, including Fairfax Avenue in Hull, Esk Close in Guisborough, Zetland Road in Loftus, Stokesley High Street in Middlesbrough, Queen Street in Redcar, Middle Street in South Driffield, and Woodthorpe in York. GB News reports these are part of Morrisons’ move to cut 100 high-street Morrisons Daily stores.
Morrisons said it plans to “mitigate the impact on customers” by using nearby locations and online orders. The stores closing are former McColl’s sites the company took over, which have posted losses for years despite efforts to turn them around. GB News
For investors, it’s less about how many stores Morrisons has. The grocer, now private under Clayton, Dubilier & Rice, is making cuts that show just how much pressure small-format food retail is under. Tesco and Sainsbury’s—both public—operate in the same convenience sector. Landlords with smaller retail sites could face higher tenant risk if grocery players keep trimming low-profit locations.
Morrisons latest investor update breaks down the numbers. The supermarket posted group like-for-like sales growth of 2.2% in the 13 weeks to April 26. Total sales rose 1.7% to 4 billion pounds. First-half underlying EBITDA came in at 323 million pounds, up 5.7%. The company opened 30 Morrisons Daily franchise stores in the second quarter, bringing the first-half total to 52 franchise openings. Cost savings hit 942 million pounds, close to its 1 billion-pound target.
Chief Executive Rami Baitiéh said “trading conditions remain highly competitive.” He added that the company is watching input inflation “very closely.” Morrisons
The combination of new franchise openings and shutting company-owned stores changes how Morrisons handles convenience risk. Franchise locations let Morrisons grow the brand but skip the direct costs of running stores. But the McColl’s shops it owns still mean Morrisons pays for wages, rent, energy and has to deal with low footfall.
Molly Monks at Parker Walsh said foot traffic outside city centers is still stuck below where it was before the pandemic, speaking to GB News.
The Post Office figures complicate the data. As of February 2026, the UK had 11,708 post office branches, more than the 11,500 minimum. But as of March 2025, 78% were standard agency branches—often inside retail stores—and 7% were drop-and-collect sites that don’t offer the full range of post office services.
| Investor read-through | Current data point | Why it matters |
|---|---|---|
| Morrisons cost repair | More than 100 loss-making Morrisons Daily stores will close, with hundreds of roles at risk | Pressure persists in the group’s owned convenience business post-McColl’s. |
| Franchise shift | Company opened 52 new Morrisons Daily franchise stores in H1 | Shows the brand can grow without holding the riskiest locations. |
| Cash generation | First-half underlying EBITDA up 5.7% to £323 million; cost savings reach £942 million | Offers lenders and rivals a benchmark on margin recovery in the results now. |
| Public-service drag | By March 2025, 78% of Post Office sites were standard agency model | Loss of a shop sometimes triggers new local rows over services. |
In Grovehill, campaigners want Post Office Counters Limited to keep a local branch open. They suggest it could be sited in another business or stay as a separate location on Henry Wells Square. Over in Hull, July 10 is the next deadline for anyone interested before Bricknell shuts on Aug. 9.
