Casino Expands, Morocco Still Outstanding
Morocco's organised food retailing industry is relatively well developed compared to most markets in North Africa. However, comparisons with the likes of Egypt, Algeria and Libya are not too challenging and in wider terms, Morocco ' s food retailing sector has a long way to go yet. In 2011, we estimate food retailing sales to have been about US$800mn, which is still fairly small for a country with a population of about 32mn. Given Morocco's relative wealth with a per capita GDP close to US$3,000, we believe there is a lot of room for growth. What is more, as one of the region's most politically stable countries, Morocco has had little trouble attracting foreign direct investment into its food and drink industry with some notable events taking place in 2012. Both Danone and Kraft Foods have made acquisitions totalling close to US$1bn this year. In retail, the French company Casino has plans to expand through its subsidiary , Monoprix , with around 15 stores expected to be launched by 2015.
|Growing From A Low Base|
|Morocco Organised Food Retail Sales (US$bn)|
From a low base, we are anticipating strong growth in organised food retail sales to 2016. Across North Africa, t he majority of the region's retail markets are fragmented and most outlets remain independent family-run stores, which offer convenience, geographical proximity to customers , and large product ranges. However, as we have seen following deal activity by Danone and Kraft , and with Casino now intent on expanding, North Africa and specifically Morocco is definitely of major interest to multinational food and drink companies at this moment in time.