Supermarkets in the Netherlands Open Tobacco Stores to Avoid Ban
According to a report by Financieele Dagblad, Dutch supermarkets are now opening specialized tobacco shops next to their food retail stores in order to circumvent the cigarette sales ban that will be enforced from July 1st.
Professional tobacco shops will no longer require a license, but starting in July, they will need to register. At that time, supermarkets will be prohibited from selling cigarettes and tobacco products. The anti-tobacco organization TabakNee is currently campaigning for the introduction of tobacco sales permits, and this initiative has gained support from the majority of lawmakers.
According to the organization, it was revealed in September that within just four months, 33 new tobacco shops have been opened, with half of them being owned by supermarkets. Additionally, Dekamarkt supermarket is attempting to establish Primera specialty stores in major locations. TabakNee states that British American Tobacco holds a 46% stake in Primera.
Rolf Hoogkamer, the owner of a Jumbo franchise store, has expressed some concerns regarding this matter, stating that he himself does not smoke.
He stated that there is a high demand, especially from elderly residents living in nearby apartments who have difficulty walking. They can now easily purchase cigarettes, which is a good thing," according to FD's data, the total sales of tobacco products in 2020 reached 4.4 billion euros, with 2.4 billion euros coming from supermarkets. "The profit margin for each pack of cigarettes is 7.5%," added Hogkamer.
Ton van Veen, Chief Executive Officer of Jong Bo Supermarket, has revealed that "7% of our turnover comes from tobacco, which amounts to approximately 700 million euros annually." The government has taken several measures to curb smoking. The increase in taxes on a pack of cigarettes has raised the price of a 20-cigarette pack to 10 euros, advertising has been prohibited, and the sale of tobacco now requires plain packaging.
From 2032 onwards, the sale of cigarettes will be limited to specialized stores. Lidl supermarket, in the year 2021, decided to cease the sale of tobacco products, although independent franchises have the autonomy to make their own decisions. The outgoing government has agreed to pass the issue of tobacco shop licenses to the next administration for decision-making.
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