Morrisons Sells Pharmacies to Cut £1B in Costs Amid £7.5B Debt

Morrisons has begun selling off its in-store pharmacies on a piecemeal basis, part of a cost-cutting drive by CEO Rami Baitiéh to shed £1 billion in expenses at the debt-laden UK grocer. Several sites have already been sold to independent buyers and existing management, with dozens more targeted by early 2026. The move follows an internal review that deemed many of the retailer's 100-plus pharmacies financially unviable. Morrisons, owned by US private equity firm Clayton, Dubilier & Rice since 2021, posted a near-£1 billion loss last year and carries £7.5 billion in debt, despite 2.8% like-for-like sales growth in the 12 months to October 2025. A broad restructuring closed four pharmacies, 52 cafes, 17 convenience stores, 35 meat counters and 13 florists. Morrisons now holds 8.3% of the UK grocery market, down from 10% at acquisition, after Lidl overtook it in May.