Rabat’s Largest Mall Sees Wave of Store Closures Amid Economic Pressures

In Rabat, store closures are piling up. At least a dozen brands have closed their doors at Arribat Center. Among them are those who were the first to settle in this large shopping mall just before the Covid-19 pandemic. At the origin of these closures, "the drop in the attendance of shopping centers (due to the shock on purchasing power in the wake of major economic crises) and consequently, the preponderance of rent in the cost structure of sales outlets, which no longer allows them to be profitable," reports Challenge. The closed points of sale are no longer able to cope with the high rents that represent more than 30% of the turnover of some of them, or two to three times higher than the international standard.

Will this situation give rise to a tug-of-war between the management of Arribat Center and the tenants? Only time will tell. For now, some tenants are conditioning the continuation of their presence on site on significant rent reductions. Meanwhile, the AKSAL group, another major mall developer, is preparing to launch its Morocco Mall Rabat in the administrative capital starting in 2025. Its size is twice as large as Arribat Center. Enough to put the large center owned by Foncière Chellah, a subsidiary of CDG développement, in difficulty.