Morocco’s Competition Council has raised concerns about profit-taking and pricing inefficiencies in the country’s food distribution network, highlighting how both traditional and modern retailers have contributed to sustained food inflation by raising retail prices more than their purchase costs during 2021 and 2022, while failing to fully pass on supplier discounts in 2022–2023.
In a detailed market opinion released this week, the council revealed that grocery shop owners (“Moul l’hanout”) continue to play a vital social role by offering credit to low-income consumers through informal ledgers known as “karnis”. Despite the growth of modern retail and e-commerce, traditional commerce still dominates, accounting for 80% of sales and 99% of points of sale nationwide.
The report criticizes the long distribution chains, particularly in rural areas, where products often pass through three to four intermediaries, inflating final prices. It also notes a lack of coordination among small retailers and inadequate infrastructure in urban neighborhoods.
Notably, the council found that retailers often set unified prices for leading food brands—such as butter or pasta—regardless of input costs or brand variation, and tend to immediately reflect price hikes, but delay implementing discounts, citing inventory constraints.
While acknowledging the resilience of traditional commerce, especially its ability to serve lower-income populations and adapt to flexible hours and small purchases, the report underlines the need for modernization and better integration of informal retail into Morocco’s formal food economy.
The report also documents the steady expansion of large-scale retail outlets, which reached 1,379 stores by the end of 2024, driven by continued urbanization. However, without reforming pricing practices and reducing intermediary layers, the council warns that competitive inefficiencies will persist, ultimately harming consumers and distorting price signals in a sector critical to national economic stability.
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