Refrigeration Appliances in Morocco

2020 IMPACT

Economic impact of COVID-19 pandemic cuts demand for refrigeration appliances

The total closure of foodservice outlets, and home quarantine of Moroccans for several months in 2020, did not bring about an increase in retail sales of refrigeration appliances. Rather, refrigeration appliances declined significantly in both retail volume and current value terms.

Leading brands maintain volumes with discounts and special offers

In response to the much weakened purchasing power of Moroccan consumers in 2020, companies introduced aggressive discounts, as an attempt to maintain sales volumes. Some companies began to offer ‘combo sales’ of three different appliances for one discounted price, and including a free gift.

Refrigeration appliance owners the most affected by COVID-19 lockdowns

Sales of refrigeration appliances throughout the country suffered from consumers not being able to visit retail stores from March until the middle of July. The metropolitan areas, particularly Casablanca and Rabat, where the highest number of households own refrigeration appliances, were subject to the strictest lockdowns.

RECOVERY AND OPPORTUNITIES

Longer replacement cycles to slow rate of recovery

Moroccan consumers traditionally have a long replacement cycle for their refrigeration appliances, due to their purchasing power generally being quite low. They are expected to replace their refrigeration devices even less frequently throughout the forecast period, leading to sluggish retail volumes, as levels of disposable income are likely to recover only slowly.

Discounts and more appealing financing to drive short-term growth

It is expected that companies’ current strategy of offering heavy discounts and special promotions will continue throughout the forecast period. This will support the return of retail volumes towards their pre-COVID-19 levels, although it will have less of an impact on average unit prices and the current value dynamic.

Sales volumes to recover in line with key sectors’ return to normalcy

The rate at which refrigeration appliances grows during the forecast period is certain to reflect the pace at which the country recovers from the onset of the COVID-19 pandemic. Once Morocco’s crucial agriculture and tourism sectors begin to show signs of recovery, the millions of consumers working in them will feel more confident about making large purchases, including replacing their refrigeration devices.