Dutch tobacco shops see 40% revenue growth since ban

Aug.13.2024

Dutch tobacco shop sales soar over 40% since supermarkets banned sales on July 1, says NL Times report.

According to a recent report by NL Times, since July 1st of this year, tobacco sales in the Netherlands have been banned in supermarkets, resulting in an increase of over 40% in revenue for tobacco shops.

The spokesperson of the Dutch Tobacco Retailers Association (NSO Retail) stated that the revenue of specialist shops has been increasing for some time. In fact, some large supermarkets like AH and Lidl have already stopped selling tobacco products.

According to a survey conducted by TabakNee, a research website under the Foundation for Teen Smoking Prevention, the Netherlands has opened over 100 new tobacco shops this year.

The spokesperson stated that

This figure has already exceeded the total amount projected for 2023.

As of early June this year, a total of 230 new stores have opened since the announcement of the ban on smoking in supermarkets at the end of 2020.

TabakNee pointed out that many businesses are circumventing sales bans by opening standalone tobacco shops, which are usually located next to or near supermarkets.

However, NSO Retail denied this claim. The association stated that the actual number of new tobacco shops added this year is only a few dozen.

Considering that more than 6000 supermarkets have stopped selling tobacco products, this increase is not considered significant.

A report from the industry organization Drive states that gas stations are also benefiting from the ban on smoking in supermarkets.

The spokesperson noted that tobacco sales at their 1,300 gas stations have increased by varying amounts ranging from 10% to 40%, with the increase primarily dependent on the geographic location of the gas station.

Sales at gas stations near the highway have seen limited growth, while sales at gas stations in the city center have increased significantly.

Also Read:

[1] Russian Court Suspends Rights of Dutch Tobacco Distributor Megapolis

[2] Dutch Authorities Seize 8 Million Illegal Tobacco Products

[3] The Continued Prevalence of Flavored E-Cigarettes in the Netherlands

[4] Netherlands Implements Neutral Packaging for Tobacco and E-cigarettes

[5] Proposal to Standardize the Function and Appearance of E-Cigarettes

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