Kazyon’s Rapid Expansion Dominates Moroccan Discount Retail Market

How to explain this rapid growth of Kazyon in Morocco? "There are no big secrets in the speed of Kazyon’s expansion. I am mainly lucky to work with a dynamic and motivated local team, the majority of whom have extensive experience in developing neighborhood stores. We have put in place a rigorous and well-optimized operational model, which allows us to reduce lead times and ensure consistent quality in each point of sale. Our centralized supply chain has been optimized to support this rapid expansion. By working closely with our suppliers and streamlining our logistics processes, we guarantee available and quality products in each store, even during periods of strong growth," Mohamed Benmezouara responded in an interview with Challenge.

Kazyon aims to "become a major player in the discount retail sector" in Morocco. "Our goal is to make essential products accessible to all, while maintaining attractive prices without compromising quality. We are also committed to supporting local suppliers and creating job opportunities in the regions where we operate. It should be known that the investment planned for the first 4 years is 144 million dollars," explained the CEO before revealing one of the secrets of Kazyon’s success: "We have our way of operating to better serve our customers. Our rapid growth is a testament to our commitment to making our products accessible to the greatest number. Our project remains 100% carrier of Moroccan identity, intended for all Moroccans, by 100% Moroccan young talents and with local partners and suppliers."

To further distinguish itself from other hard discount chains in Morocco, Kazyon has already "started [its] loyalty program to reward [its] customers" and will soon launch the production and marketing of its own brands, said Mohamed Benmezouara, stressing that "Kazyon stands out through rapid expansion, a strong commitment to the local economy, a competitive pricing strategy and constant innovation capacity, making us a unique player in the Moroccan hard discount market." Although notable progress has been made (development of the agri-food industry, improvement of the logistics sector, passing of the law governing rental, demographic growth favoring investment and the emergence of a larger middle class, etc.), the hard discount sector in Morocco still faces a number of challenges.

"With the rise in raw material costs and economic fluctuations, maintaining low prices is a constant challenge. In hard discount, where margins are already reduced, managing this inflation while remaining competitive is a constant priority. By reducing our overhead costs and adopting an approach to avoid any unnecessary charges, we manage to generate respectable revenues while being the most interesting destination on the market for our customers," the CEO said. In the medium and long term, Kazyon plans to open 150 new stores in Morocco in 2025 and strengthen its presence in all regions of Morocco. "We will continue to support local suppliers and create job opportunities, thus contributing positively to the Moroccan economy...," he concluded.