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mini-market in Morocco
hanae belsakri
Writing By Hanane Belaskri

18.01.2023 | Bh Adviser | Morocco

Opening a mini-market in Morocco

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Moroccans are known for their consumption. This is immediately apparent when you look at the grocery shops and mini-markets. These shops sell at all times of the day, with spikes during school and office hours. Regardless of the area in which the convenience store is located, it is likely to be profitable in a short time. Thus, having a convenience store is one of the many investment opportunities popular with residents as well as Moroccans living abroad. But, how does one open a convenience store and what advice should one follow to position oneself well?

mini-market in Morocco

Ease of opening

The creation of convenience stores in Morocco is easy because there are no rules governing the creation of such commercial premises in terms of number. Moreover, it is always easy to attract customers, as the convenience store has the advantage of avoiding the queues in the large stores. And, being closer to households than super and hypermarkets, they are also more accessible to households daily. This is also the reason why many hypermarkets are trying to get closer to households by opening mini-markets in the neighbourhoods to offer their products.

It should also be noted that the opening of mini-markets is not only for nationals. Foreigners can also enter the business, provided they find a good location and follow all the administrative and financial formalities provided for by the law.

Premises and location

The profitability of a convenience store depends above all on the location of the space where the products will be displayed. It is important to choose a busy street to be quickly known by potential and future customers. Similarly, it is more profitable for a mini-market to be in a popular area, where there are generally no large stores. It will then be an opportunity to present customers with the items they need most daily and some rare items that are only available in the big stores

The premises should also be 100 square metres in size if it is located in a popular area and 200 square metres if it is located in a residential area. In the latter case, it will be able to provide more products adapted to the standing of the target clientele. To facilitate the profitability of the business, it is recommended to start with a rental system for the premises. However, if a land title is already available for premises suitable for a mini-market, the premises can always be developed accordingly.

Development costs

The cost of fitting out the new premises depends on the method used to equip them. It is more expensive to call on companies that offer a complete fitting out with approximately 100,000 dhs in costs. By complete fitting out, we mean the various shelves for displaying the articles for sale, the boxes, the refrigerators, freezers and scales, the caddy, etc. To make this part of the project profitable, it is possible to have the shelves made and to buy the refrigerators that the mini-market needs itself. This requires a budget of about 50,000 dhs for all the manufacturing.

Another simple trick is to partner with a food company to get free shelves. In exchange, the convenience store will display the company’s merchandise in the first position on the shelves. These food companies can even agree to rent a space in the convenience store to display their products by installing a canopy or a shelf with their name on it.

We remind you that before installing the various shelves, another 50,000 dhs must be set aside for all the electricity, water, paint and other installations.

  • 50% of the budget is allocated to necessities: sugar, tea, coffee, basic vegetables, oil, semolina, etc.

  • 30% of the budget is allocated to dairy products.

  • 20% of the budget is divided between biscuits, toiletries, tins, meat, household products, etc.

Working capital and starting the business

Once the space has been properly equipped, working capital of about Dhs 100,000 is needed. It is important to also set aside an amount that will be used to amortize all expenses until the mini-market becomes profitable on its own in the following months. In terms of expenses, it is advisable to plan for:

  • 15,000 dhs monthly rental cost for a space of about 300 square meters.

  • 3000 dhs monthly salary for each employee, knowing that on average two to three people are needed as well as a cleaning lady.

  • 3000 dhs of losses per month for unsold products that are perishable.

  • 80,000 dhs per month for stock replacement. At this level, it is recommended to renew the stock on average every week to be sure not to be out of stock.

  • 20,000 dhs on average to be spent every 5 years to renew the equipment which will be amortized.

All these expenses can seem huge if you are not well prepared. Therefore, it is recommended that you seek the support of financial institutions to help you with the expenses and start-up costs. Similarly, it is also important to be in touch with good managers who will help find the right development opportunities and marketing practices to attract the maximum number of customers to the new convenience store.

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