Kazyon challenges BIM in Morocco's discount market

In an interview with Challenge magazine, Kazyon CEO Mohamed Benmezouara announced that the Egyptian retailer aims to open 150 new stores in its second year in Morocco.

Initiated with 116 outlets, the rapid expansion of the chain's distribution network takes advantage of a «rigorous and optimized operating model that reduces lead times and ensures consistent quality in every outlet», emphasizes the CEO.

The hard discounter has earmarked an investment envelope of $144 million over the first four years. It is capitalizing on an «optimized» supply chain capable of competing with the Turkish retailer Bim Store.

For Kazyon's CEO, the challenges facing the country's supermarket sector are manifold. Soaring raw material costs and economic fluctuations are, he says, encroaching on already tight profit margins.

In response, the hard discounter has readjusted its management tactics: «By reducing structural costs and adopting an approach aimed at avoiding all superfluous charges, we manage to generate respectable revenues by being the most attractive destination on the market for our customers».