The sale of pharmacies by Morrisons is the latest attempt to strip back and focus on traditional retail, after losses hit £381 million last year.
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UK Supermarket Morrisons has put dozens of pharmacies up for sale in a new attempt to cut costs.
The private equity-owned supermarket has tasked property agents at selling pharmacies on a store-by-store basis, after concluding that many of their in-store pharmacies are not financially viable.
Pharmacies are expected to remain open in stores, but will come under the new brand of any eventual buyer.
The move comes after Morrisons’ losses hit £381 million last year, primarily over steep borrowing costs.
The sale of pharmacies by Morrisons is the latest attempt to strip back and focus on traditional retail.
Only last year, a separate restructuring saw the closure of four pharmacies, 52 cafés, 17 convenience stores, 35 meat counters and 13 florists – putting over 300 jobs at risk of redundancy.
Rami Baitieh, chief executive of Morrisons, said the cuts were a “necessary part of our plans to renew and reinvigorate Morrisons” after going through a “challenging period”.
Mr Baitieh said lower consumer spending among poorer shoppers, with many affected by price rises, were to blame.
Supermarkets have also come under pressure from rising taxes under Labour, particularly under the Chancellor’s decision to increase employer National Insurance rates.
Speaking in January, Mr Baitieh asked with the Government to stop hitting retailers with any further costs.
“I would say, please, no more. This is very important for the market. We expect inflation to go up.”
Many other pharmacies have also struggled with finances in recent months, with around 1,400 pharmacies shutting in England since 2017, according to the National Pharmacy Association.
The closures have been blamed on rising wage costs, and a lack of funding paid to NHS pharmacies.