Adel Ayed, former CEO of Monoprix Tunisia granted African Manager an exclusive interview in which he talked about the economic and financial situation of the company, its future plans and its place in relation to other mass-market brands.
Adel Ayed, whom we met on the sidelines of the inauguration of the new Monoprix store February 27 in Soukra, also spoke of the Libyan market and prospects for the development of the brand on the Moroccan and Algerian markets.
Interview:
You are opening your first store “Monoprix” today in Soukra, what are the reasons for your choice?
First, it should be noted that we had trouble opening in this place and it was not easy to find an area of 1,500 m2 on the main road to Soukra.
Now we have the chance to participate in the development of Soukra Mall. This is a store that combines all the concepts offered by Monoprix including textiles, perfumes, cleaning products, food and especially fresh products to meet the needs of local customers as there are no markets nearby.
We have tried to offer our customers and neighbors what they need for their daily shopping.
We are very proud to see the reactions of customers who are obviously very happy to meet all their needs at prices we always try to make very interesting. We always want to meet the expectations of our customers.
What’s new in this new store compared to others?
There are new innovations in exhibitions and staging, but the big news is meat and poultry in the traditional way with a specialized butcher who is always there. This is something that was not done by Monoprix to date and which we start in this store to subsequently extend it to others.
What do you think of the financial situation of Monoprix?
We have undergone a difficult situation since 2011, following the deterioration in purchasing power. This is the situation underwent equally by the industrial and commercial fabric in Tunisia. But the retail sector is somewhat preserved because it targets basic and daily needs.
Households make the effort to preserve purchasing power and to survive and maintain consumption. We’re in a defensive sector. In difficult times, we are the ones who have emerged unscathed.
We even manage to progress from one year to another. During the year 2015, we have not opened new stores but the year was honorable and our turnover has increased. Even in the most difficult times, the retail sector does quite well.
In 2015, there was more than 5% growth of our turnover, but the not yet published financial results will be significantly better than those of 2014.
Your development prospects for 2016?
the opening of new stores was delayed for the year 2016. During the first half of 2016, we will open a lot of stores. After that of Sedjoumi in January and Soukra in February, another opening will take place during the month of March.
In total, there will be 5 new stores “Monoprix” during the first half of 2016.
Throughout the year 2016, we expect the opening of nine new stores, a figure that matches the pace of development of Monoprix and that of the country in general but there are whole areas where there is no modern trade.
With this in mind, do you think about regions?
Of course, our next opening will be in Ksar Hlel but also in Mahdia, Gabes and Djerba where we already have three stores.
Although the situation is difficult, we must think of all regions of the country, to bet and not focus solely on Greater Tunis.
What is the position of Monoprix compared to mass-market brands?
Today we have reached a level where all brands are equivalent. The three main players in the retail namely Monoprix, Carrefour and Magasin Général are equal and each brand has a market share of around one third market.
Have you considered expanding internationally?
We have thought of Libya but today our activity in this country is on hold. We have two stores, one of which was completely closed and the other working but really slow due to insecurity and supply problems. We expect things to stabilize in this country to be able to resume our activities.
There is also interest in Morocco, but we need to find partnerships with Moroccan groups. The Algerian market is also interesting for us.
Internationally, we look but we are cautious especially with the experience we had in Libya. It is necessary that one relies on strong local partners. These are the demands of the international market.
