ING: Smoking ban will cost Dutch supermarkets dearly

ING: Smoking ban will cost Dutch supermarkets dearly

The Dutch Times quoted ING as saying that supermarkets will lose more than 1.5 billion euros ($1.64 billion) in revenue due to the ban on tobacco sales that takes effect in the Netherlands on July 1.

According to researchers at the bank, about 35% of tobacco sales will shift to tobacco shops and smaller convenience stores.

Gas stations and shops on the Belgian-German border will also benefit from the Dutch supermarket smoking ban.

Tobacco accounts for about 7% of Dutch supermarket revenue, equivalent to a total annual revenue of 3.2 billion euros.

Thijs Geijer, an economist at ING, said: "The revenue decline will be more pronounced in the second half of 2024." Most supermarkets, with the exception of Lidl and most Albert Heijn stores, will be in the first six months of the year. Tobacco sales continue.

"Supermarket turnover growth will continue to fall sharply into 2025 as the ban takes effect on July 1," Gage predicted.
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