Retail in Morocco: Why Supermarkets Are Growing Without Displacing Local Shops?

Consumer confidence is gradually improving, yet the retail sector continues to face pressure for growth. This insight comes from the report State of Grocery Retail MENA 2026 published by McKinsey, which urges industry players to rethink their business models to reignite growth dynamics. In Morocco, however, this issue extends beyond mere performance or profitability challenges. The rapid expansion of major chains, particularly those operating on a discount model, reflects deeper transformations within the Moroccan market.

Despite this accelerated modernization, traditional commerce continues to hold a significant position in the national economic landscape. The “hanout”, or local shop, remains a central element in the daily consumption habits of Moroccan households. Between the expansion of modern distribution chains and the resilience of traditional commerce, the retail sector in Morocco is currently navigating a delicate phase where the primary challenge is no longer just growth, but the coexistence of two distinct economic models.

On one side, modern shopping centers thrive, while on the other, popular alleyways and neighborhood markets persist, showcasing two economic realities side by side. Major chains rely on structured supply chains, rapid deployment strategies, and operational optimization backed by qualified human resources. Meanwhile, local shops continue to play an essential role in the daily lives of consumers.

According to the McKinsey report, modern retail in Morocco recorded a growth of 4.7% in 2024, accompanied by an 11% increase in new store openings. In a MENA region where growth remains relatively moderate, Morocco stands out as one of the most dynamic markets in the sector.

However, these figures require a more nuanced interpretation. Several experts argue that “the numbers are correct, but their interpretation isn’t always.” They believe Morocco cannot yet be classified as a mature market that has reached an optimization phase. It is primarily a traditional market undergoing a transition to more modern formats. Consequently, the current growth does not reflect a total dominance of modern retail but rather a progressive evolution.

This transformation is particularly visible in the geographical expansion of the sector. The number of modern retail stores in Morocco surpassed 1,580 points of sale at the beginning of 2026. This growth is primarily driven by discount chains like BIM, Supeco, and Kazyon, which alone account for over 1,300 stores. Recently, Marjane Market has also joined the fray, confirming that competition now hinges on the speed of territorial deployment and the ability of brands to cover various regions of the country.

Despite this rapid expansion, proximity commerce retains a solid position. The hanout is not merely a social legacy; it represents a genuine structural competitor.

Morocco has around 250,000 local shops compared to nearly 1,300 modern stores, illustrating the significant weight of traditional commerce. This model is based on several advantages that are difficult for large chains to replicate: geographical proximity, the ability to purchase in small quantities, flexible hours, and credit sales through the “carnet” system—an informal social system that helps many families manage their daily expenses in a challenging economic context.

In this context, large supermarkets do not replace the hanout; they coexist with it. Moroccan consumers alternate between different channels depending on their needs: quick daily purchases at neighborhood shops, bulk buying at supermarkets, and seeking attractive prices at discount stores. This diversity in purchasing behavior makes a complete transition to a single model unlikely in the short term.

Online food commerce, often heralded as a major transformation driver, also remains limited in Morocco. Although online food sales have risen by over 40% in the MENA region between 2019 and 2024, adoption in Morocco remains low. Only 21% of consumers report wanting to increase their online purchases, the lowest rate among the surveyed markets.

Paradoxically, digital transformation could stem from the traditional commerce sector itself. The emergence of digital platforms connecting local shopkeepers with suppliers could modernize the hanout without erasing it, paving the way for a hybrid model that combines physical presence with digital services.

By 2030, this balance between different commercial formats may persist. Experts estimate that traditional commerce could account for 55% to 60% of food sales, while modern distribution could reach 35% to 40%, with e-grocery representing only 5% to 7% of the market. The discount segment might generate up to 40% of the revenue in modern distribution.

Ultimately, two opposing visions of the Moroccan market emerge. The first, championed by McKinsey, emphasizes modern transformation tools such as data, artificial intelligence, and e-commerce. The second, defended by several Moroccan industry experts, leans more toward local realities: territorial expansion, price control, and understanding consumer habits.

In a market like Morocco’s, technology alone does not guarantee success. The true key to success lies in the ability to comprehend consumer needs and adapt to their daily economic reality.