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The Morrisons supermarket’s logo is displayed on this sign.
Credit: Shutterstock, P.Cartwright.
In 2021, Morrisons was snapped up by US private equity giant Clayton, Dubilier & Rice in a £7 billion deal – a takeover funded mostly by debt.
The price of this deal is still felt.
Since then, the supermarket faced increasing interest payments and squeezed profits margins. This made it difficult to compete with low-cost rivals such as Aldi and Lidl.
Retail analysts believe that the debt fuelled purchase has restricted Morrisons’s ability to compete on price and invest in loyalty programs.
Now, hundreds more jobs are on the line as the supermarket giant trims fat to survive.
As supermarket giants trim the fat in order to remain competitive, hundreds of jobs are at risk.
Morrisons is wielding the axe in a sweeping shake-up that will see 52 of its in-store cafés and 17 convenience stores shut shop, as the embattled supermarket chain looks to cut costs and regain its footing in the fiercely competitive grocery market. Morrisons started as an egg and butter merchant in Rawson Market in 1899 in Bradford. Morrisons has announced that it will close a number of stores, affecting around 365 workers, but the supermarket is insistent. Most of the population is Staff affected by the redeployment are expected to find new jobs within the company.
This latest round of cutbacks will also see the end of all 18 ‘market kitchens’, as well as 13 florists, 35 meat counters, 35 fish counters, and four pharmacies, as the chain attempts to streamline its in-store offerings and ‘focus investment into the areas that customers You can also find out more about the following: value,’ according to chief executive Rami Baitiéh.
Speaking about the cuts, Mr Baitiéh said: “The changes we are announcing today are a necessary part of our plans to renew and reinvigorate Morrisons and enable us to focus our investment into the areas that customers Yours truly “We can grow by adding value.
This move is expected to be implemented in the next few months Comes Morrisons is fighting to remain competitive in a market dominated by discounters. In 2022, Aldi overtook Morrisons as the UK’s fourth-largest supermarket – a blow It is still possible to do so The Bradford-based brand has created a series of stings.
Morrisons employs approximately 95,000 people in its 500 supermarkets, 1,600 Morrisons Daily Stores, and has faced increasing pressure from customers to deliver better value for money.
Morrisons Daily’s smaller convenience formats, which typically have extended opening hours, are facing closure. Then, there is the café closures The stores will be affected in London, Leeds and Portsmouth as well as Glasgow.
In a bid for To soften the blow of the announcement, the supermarket said it was exploring partnerships with third party providers to takeover certain services in store and “provide an appropriate specialist offer.”
This isn’t the first major player to call time on its cafés. In January, rival Sainsbury’s also scrapped its remaining café operations, bluntly admitting that most shoppers “do not use the cafés regularly.”
It’s a bitter medicine The swallow for loyal customers who saw the in-store café as part of the Morrisons charm – a budget-friendly bacon bap and brew after shopping. Today’s supermarkets face a difficult choice. Cut Reduce the amount of non-essential items.
Whether this back-to-basics approach will be enough to revive Morrisons’ fortunes remains to be seen, but sadly, café culture in British supermarkets is going cold.
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