Discount Retail Chain Kazyon has established itself as one of the leaders in hard-discount in Morocco together with Turkish BIM, with nearly 120 stores opening at a surprising speed last year. At the heart of this success is a seasoned CEO with more than two decades of experience who knows the market inside out. According to Mohamed Benmezouara, the group's strength also lies in the potential of Moroccan human resources, see below his interview with the magazine Challenge.
Challenge: You have opened 116 stores in record time. What was the secret of this rapid growth?
Mohamed Benmezouara: There are no big secrets in Kazyon's rapid expansion. Above all, I am lucky to work with a local, dynamic and motivated team, the majority of whom have extensive experience in the development of convenience stores. We have implemented a rigorous and well-optimized operating 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 ensure that products are available and of high quality in every store, even in times of strong growth.
By combining these elements, KAZYON was able to deploy its stores quickly and efficiently, while maintaining our level of operational excellence.
Challenge: What is Kazyon's vision for the Moroccan market?
M.: Kazyon's vision for the Moroccan market is to become a major player in the discount retail sector. Our goal is to make essential products accessible to everyone, maintaining attractive prices without compromising on quality. We are also committed to supporting local suppliers and creating employment opportunities in the regions where we operate. It should be noted that the investment planned for the first 4 years is $144 million.
Challenge: What distinguishes Kazyon from other hard-discount brands on the Moroccan market?
M.: 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 as many people as possible.
Our project remains 100% Moroccan identity, intended for all Moroccans, through 100% Moroccan youth skills and with local partners and suppliers.
We have a wider permanent assortment, we will soon start producing and marketing our own private label brands and have started our loyalty program to reward our customers.
Kazyon stands out for its rapid expansion, strong commitment to the local economy, a competitive pricing strategy and a constant capacity for innovation, making us a unique player in the Moroccan hard-discount market.
Challenge: What are, in your opinion, the main challenges facing the hard-discount sector in Morocco?
M.: I was lucky to launch a similar project in 2008 in Egypt, and can tell you that the difference compared to 2024 is huge on a set of aspects:
Industry, and mainly the agri-food industry, has developed in an incredible way and the number of suppliers per category is multiple.
Infrastructure is constantly improving in every corner of the country, the logistics sector is in turmoil and offers increased opportunities.
The law governing tenancy has facilitated, reassured and accelerated commercial leases
Population growth, according to the latest census, encourages investment in urban and semi-urban areas that offer population density and increased commercial potential.
The development of the middle class remains the dynamo of any commercial activity in the long term, ensuring a continuous supply of purchasing power. It is a virtuous circle enriching the country's industrial capacities and promoting the emergence of a more middle class.
With rising raw material costs and economic fluctuations, keeping prices low is becoming a constant challenge. In the hard-discount market, where margins are already squeezed, managing this inflation while remaining competitive is a constant priority. By reducing our structural costs and adopting an approach of avoiding unnecessary charges, we are able to generate respectable revenues by being the most attractive destination on the market for our customers.
Challenge: How do you see the evolution of the retail sector in general and hard-discount more specifically in Morocco in the coming years?
M.: The retail sector in Morocco is moving towards greater digitalization, expansion of new convenience stores and modernization of old ones, increased competition and adaptation to local preferences, while integrating sustainable practices. These trends are expected to strengthen in the coming years, providing Moroccan consumers with diversified shopping options tailored to their needs.
Challenge: What are your medium- and long-term expansion plans for Kazyon? And how many stores do you plan to open in 2025?
M.: In the long term, we plan to strengthen our presence in all regions of Morocco, with a focus on urban and high-density areas, in order to make our products accessible to as many people as possible. We also plan to introduce technological innovations to improve the customer experience and optimize our operations.
At the same time, we will continue to support local suppliers and create employment opportunities, thus contributing positively to the Moroccan economy. Our commitment is to provide quality products at competitive prices, while meeting the specific needs of Moroccan consumers.
A training academy for the discount trade will be created and I will be very proud to see the Moroccan teams actively participate in the international development of Kazyon. Moreover, for the second year of our presence on the Moroccan market, we plan to open, 150 new stores.
Read more: Mohamed Benmezouara, CEO of Kazyon Morocco: "We plan to open 150 new stores" | Challenge.ma
Comments