Moroccan Retailers Call for Rent Suspension Amid COVID-19 Crisis

Retailing is one of the economic sectors hit hard by the crisis. In a press release clearly explaining their situation, they indicated that "since March 18, stores have been closed".

The press release entitled "Covid-19 crisis: Act on rents to save commerce and its jobs", published on May 4, is a cry for help in which the collective declares that "faced with the Covid-19 crisis, each economic player must share the essential solidarity efforts. This is an imperative for a rapid and beneficial crisis exit for the entire value creation chain in Morocco".

Among these struggling companies are major retail names such as 123, Alain Afflelou, Alpha 55, Au Derby, Azuelos, Bata, Beauty Success, BigDil, Bulgari, Calzedonia, Carol, Celio, City Sport, Clay, Cobra, Courrir, Decathlon, Descamps, Diamantine, Diesel, Dim, to name just a few. According to these companies, not only "unsold stocks are exploding", but they also find themselves "unable to pay their employees".

And as if that were not enough, they have to deal with landlords who keep demanding their rents. "Demanding money for a store that cannot open? The idea could seem strange. And yet, this is exactly what is happening in Morocco!" the companies concerned are outraged.

They are asking landlords to take "their share in the collective effort required by this crisis by suspending rents". Some malls have actually agreed to see reason and show solidarity, starting with Tanger City Center which has "eliminated the rents of its tenants, closely followed by Morocco Mall and Anfa Place in Casablanca and finally, Ryad Square in Rabat". The others have simply refused to follow the movement, according to Le360.

For the retailers, the situation is critical, as it is a "survival imperative". According to the collective’s press release, "the level of turnover (revenue) upon resumption will be much lower than in 2019 (-70% in the first months)". Thus, to limit the damage, "a simple mechanism for aligning rents with turnover needs to be put in place", the collective explains as a response element. For them, a collective and solidarity effort could help them find the necessary solutions to their current and future difficulties, especially at the time of the resumption of activities.