Morrisons to Sell Dozens of Pharmacies (MOR.S) to Cut Costs

Morrisons (LSE: MOR.S) has initiated the sale of dozens of in-store pharmacies as part of its cost-cutting strategy, with transactions expected to be handled store-by-store. Those sold are likely to remain open under the buyer’s brand. The supermarket announced £381 million in annual losses last year, with borrowings falling from £3.5 billion to £3.1 billion. This follows a restructuring last year that closed 4 pharmacies, 52 cafés, 17 convenience stores, 35 meat counters, and 13 florists, putting over 300 roles at risk. CEO Rami Baitieh said the moves are central to the turnaround as Morrisons’ grocery share slipped to 8.4% from 8.5% in the prior year and is under pressure to maintain its fifth-largest position. Around 1,400 pharmacies have closed in England since 2017 amid higher operational costs and NHS payment shortfalls, with pressure also coming from higher taxes and NI rates.