Morrisons Pharmacy Service Faces Potential Closure in Multiple UK Locations
Morrisons has initiated a sale process for dozens of its in-store pharmacies across the United Kingdom, as the supermarket chain seeks to implement significant cost reductions. This decision follows an internal assessment that concluded many of these pharmacy units are not financially sustainable under the current operational model.
Sale Process and Operational Changes
The supermarket giant has engaged property agents to manage the sale of these pharmacies on an individual, store-by-store basis, rather than as a complete portfolio. While the affected pharmacies are expected to remain operational within Morrisons stores, they will likely rebrand under the ownership of any eventual buyer. However, Morrisons has emphasized that this outcome is not guaranteed, leaving uncertainty for both customers and staff.
Rami Baitieh, Chief Executive of Morrisons, described these cuts as a "necessary part of our plans to renew and reinvigorate Morrisons." He acknowledged that the business has been navigating a "challenging period" and is actively pursuing a comprehensive turnaround strategy to stabilize operations.
Financial Context and Market Struggles
This move comes in the wake of Morrisons reporting substantial financial losses last year, as highlighted in recent media reports. The pharmacy sales reflect broader difficulties within the retail health sector, where competitors like Boots have shuttered hundreds of pharmacy locations in recent years. Additionally, LloydsPharmacy, which operated 138 sites nationwide, collapsed in 2023, underscoring the volatile nature of the market.
In a statement last month, Mr. Baitieh urged for market stability, saying, "I would say, please, no more. This is very important for the market. We expect inflation to go up." He further explained that Morrisons aims to redirect investments toward areas that "customers really value," signaling a strategic shift in resource allocation.
Impact on Employees and Future Outlook
Morrisons has acknowledged the potential disruption and uncertainty this sale process may cause for its employees. In an official statement, the company committed to "take particular care to look after all of them well through the coming changes," despite the relatively small scale of these adjustments within the broader Morrisons business framework.
The supermarket chain, which operates branches in Birmingham and competes with major retailers such as Sainsbury's, Asda, Tesco, Aldi, and Lidl, continues to adapt to evolving market demands. This pharmacy sale follows a previous significant transaction in 2024, where Morrisons agreed to a £2.5 billion deal to sell its 337 petrol forecourts to Motor Fuel Group, a company sharing the same private equity ownership as Morrisons.
