• May 27, 2024

Tobacco Ban Will Cost Dutch Supermarkets

 Tobacco Ban Will Cost Dutch Supermarkets
Image: igorkol_ter

Supermarkets will lose more than €1.5 billion ($1.64 billion) in earnings due to the ban on selling tobacco products that takes effect in the Netherlands on July 1, reports the NL Times, citing ING.

 Some 35 percent of tobacco sales will shift to tobacconists and smaller convenience stores, according to researchers at the bank.

Gasoline stations and shops just over the border in Belgium and Germany are also set to benefit from the Dutch supermarket tobacco ban.

Tobacco accounts for around 7 percent of a typical Dutch supermarket’s revenue—the equivalent of roughly €3.2 billion in total annually.

“The revenue drop will be more visible during the second half of 2024,” said ING economist Thijs Geijer. Most supermarkets, except for Lidl and most Albert Heijn shops, will continue selling tobacco for the first six months of the year.

“Because it is introduced on July 1, the ban will continue to reduce the turnover growth for supermarkets in 2025 significantly,” Geijer predicted.