Morocco’s Mall Boom Raises Concerns as Retail Franchises Close

"Although the opening of malls can boost the economy by creating jobs and offering a modern shopping experience, there is a risk of saturation that could intensify competition with traditional retail and threaten small retailers," analyzes for the magazine Challenge, Anouar El Basrhiri, CEO of TMS consulting.

In Morocco, nearly 90% of the retail sector is occupied by international brands that are developing through franchising or on their own, and the remaining 10% by national brands. "This very strong competition based on low prices and on implantations on very large areas leaves no chance for other brands or groups to develop," details the publication.

The Moroccan groups holding one or more franchises of international brands are the most numerous in the sector. And they are the ones who "suffer the most because, in addition to taxation and rents that can sometimes be very high, they face cyclical elements at the global level with the bankruptcy of parent companies," explains the weekly.

"This mapping of the retail sector leaves little choice for the final consumer who finds himself with an offer that does not correspond to his purchasing power," notes the magazine. According to expert Amine Megzari, the State should support the creation of Moroccan brands and reduce the tax burden for Moroccan groups holding international brands so that they can offer affordable prices.