The retail landscape in Morocco is heating up as the country’s leading supermarket chains, Label’Vie and Marjane, gear up to counter the aggressive expansion of hard-discount players like the Turkish giant BIM. With nearly 800 stores already operating across Morocco, BIM has announced a staggering investment of 1 billion dirhams (approximately €96.7 million) over the next three years. The recent inauguration of a logistics hub in Marrakech, attended by Morocco’s Minister of Industry, Ryad Mezzour, and BIM’s CEO, Haluk Dortluoğlu, underscores the brand’s ambitious growth plans.
With 150 million dirhams invested in this new facility, BIM aims to boost its competitiveness by enhancing local sourcing and generating 6,000 new jobs. The brand’s expansion is backed by solid financial performance, with revenue climbing from 3.8 to 4.1 billion dirhams between 2021 and 2022.
Marjane: Holding its ground against the competition
Despite BIM’s rapid growth, Marjane Group, the leading supermarket chain in Morocco, has no intention of backing down. A subsidiary of the investment conglomerate Al Mada, Marjane generates over €1 billion in annual revenue and operates under a multi-format strategy that includes hypermarkets, Acima supermarkets, and specialized stores such as Electroplanet.
Marjane’s success hinges on its commitment to customer experience, strict hygiene standards, and transparent pricing policies. With a network of 150 stores across 30 cities and a workforce of 12,000 employees, the group is making a strong push into the convenience store segment through its Marjane City brand. These 300 m² stores, designed for quick and convenient shopping, are already making their mark in Rabat, with plans for rapid nationwide expansion.
Label’Vie’s bold vision for 2028
Label’Vie, the exclusive partner of Carrefour in Morocco, is also doubling down on its strategy to fend off competition. With a diversified portfolio that includes Carrefour hypermarkets, Carrefour Market supermarkets, and Carrefour Express convenience stores, the company reported a turnover of 15 billion dirhams in 2022.
In a bid to attract budget-conscious consumers, Label’Vie has introduced Supéco, a hybrid format that combines the wide selection of a supermarket with the low prices of a discounter. Strategically located in residential areas of Casablanca, Supéco aims to provide practical and affordable shopping solutions for Moroccan households feeling the pinch of rising living costs.
Label’Vie’s ambitious 2028 vision, unveiled during its Capital Market Day in June 2024, targets a revenue leap from 14 billion dirhams in 2023 to a projected 28 billion dirhams by 2028, reflecting an average annual growth of 15%. To achieve this, the company plans to invest 7 billion dirhams over the next five years, with 80% of the funding coming from self-financing. Expansion efforts will focus on strengthening its presence in various formats, particularly high-potential brands like Atacadao, Supéco, and Carrefour Express.
Looking beyond Moroccan borders, Label’Vie is setting its sights on international markets, with France and Africa identified as key expansion targets. The group plans to adopt a cautious yet strategic approach to capitalize on these new opportunities.
Kazyon: The rising challenger from Egypt
A new player shaking up the Moroccan retail market is Kazyon, an Egyptian hard-discount chain that made a striking debut in 2023. In less than a year, Kazyon has opened over 120 stores nationwide, from El Jadida to Tangier, and created nearly 1,000 jobs, mainly for young workers.
To fuel its expansion, the company secured $165 million in April 2023 from a consortium led by Development Partners International (DPI). Additionally, the International Finance Corporation (IFC) granted a $30 million loan to support its Moroccan operations.
Kazyon’s ambitious roadmap includes the opening of 150 more stores by 2025, with a goal of reaching 600 outlets within five years. The brand’s strategy revolves around offering high-quality products at unbeatable prices, positioning itself as a formidable competitor to established giants such as BIM, Marjane, and Label’Vie.
The digital shift: A key battleground
While BIM continues to expand its physical presence, Moroccan retailers Marjane and Label’Vie are ramping up their digital transformation efforts. In 2023, Marjane launched Marjanemall, a fully digital marketplace designed to bolster its e-commerce footprint.
Label’Vie, on the other hand, has been strengthening its online offerings and logistics capabilities, focusing on click-and-collect and express delivery services to cater to the evolving needs of urban consumers. Meanwhile, Kazyon is leveraging data analytics and strategic partnerships to optimize its supply chain and tailor its offerings to Moroccan shoppers’ preferences.
The battle for Morocco’s retail market intensifies
As BIM continues its hard-discount offensive, the competition is fiercer than ever. Marjane and Label’Vie are leveraging their experience and resources to maintain their dominance, while Kazyon’s aggressive expansion adds another layer of complexity to the market.
With territorial expansion, digital innovation, and format diversification at the heart of their strategies, Morocco’s retail giants are bracing for an intense battle in the coming years. One thing is clear—consumers stand to benefit from a wider range of choices, better prices, and enhanced shopping experiences as the competition unfolds.
