Dutch supermarket chains are rapidly opening adjacent, specialist tobacco shops to bypass a nationwide ban on supermarket tobacco sales set to take effect on July 1. This strategic shift occurs as retailers scramble to protect a highly lucrative revenue stream that historically accounted for over half of the country’s €4.4 billion tobacco market.
According to the anti-tobacco lobby group TabakNee, 33 new tobacco shops opened within a recent four-month window, with supermarkets owning half of them. For example, Jumbo franchise owner Rolf Hoogkamer opened a specialist shop next to his Breda supermarket, citing strong local demand and a steady 7.5% profit margin per packet.
Tobacco sales remain a major financial driver for grocery giants. Jumbo CEO Ton van Veen previously noted that tobacco constitutes about 7% of the company’s turnover, translating to roughly €700 million annually.
While some chains like Lidl and Albert Heijn corporate stores phased out tobacco early, franchise owners remain free to open adjacent outlets. Currently, tobacco shops do not require a license to operate, prompting TabakNee to lobby MPs for a strict licensing system.
The Dutch government has steadily tightened restrictions, raising cigarette prices to €10 per pack and mandating neutral packaging. By 2032, all tobacco sales will be legally restricted to specialist stores only, though the outgoing administration has left the decision on shop licensing to the next government.
