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Why Dutch Shoppers Are Crossing the Border for Lower Supermarket Prices

Cor Molenaar, extraordinary professor of Business Administration at Erasmus University, argues that our climate policy is partly to blame for the high prices. Kaufland in Emmerich and Netto in Elten are now teeming with Dutch people.

In Germany, the basic prices of many supermarket products are lower than here. Coca-Cola, Magnum and Nutella, for example, are up to 1.50 euros more expensive in the Netherlands than in our eastern neighbours. It is also worth crossing the border for drugstore items, alcohol and electronics. The outgoing cabinet is now having research carried out into the price differences that manufacturers enforce on the European market.

‘It hurts a lot’

Palmira and Arie van ‘t Hoog from Westervoort are not waiting for the results. They have been going to Emmerich for years. “It is no longer fun to go shopping in the Netherlands,” says Palmira in the parking lot of Kaufland. “It makes a terrible difference,” adds her husband. “I pay a total of 15.88 euros for two crates of Traugot. In the Netherlands, a crate of pipes costs me 20 euros.”

On animal feed, the couple saves 1 euro per pack of Frolic dog food and, according to them, the meat is 2 to 3 euros cheaper per kilo. “And now that we are here, we also refuel in Germany. All in all we save 60 euros on an afternoon. More than worth it”, says Arie van ‘t Hoog.

bacon copper

A little further on is Ronald Garretsen from Doetinchem. Especially with the purchases of drinks, he is a great buyer. “A bottle of cognac is half the price and the price of herbal bitters is also much lower. While I’m here anyway, I look at offers and also do the other shopping, such as sausage and bake-off rolls. They are also cheaper. And I immediately refuel here because of the lower gas prices.

There are several factors that lead to price differences between countries. For example, manufacturers impose territorial restrictions on retail chains and wholesalers. They force companies to buy domestically or from exclusive distribution partners. VAT also plays a role. In Germany, VAT on food is 7 percent, while in the Netherlands it is 9 percent. Moreover, Germany is of course larger and supermarkets have a strong position there; they can negotiate lower prices if they buy a lot of products.

Climatic

Moreover, according to Cor Molenaar, extraordinary professor of Business Administration at Erasmus University, the Dutch climate policy is causing relatively high supermarket prices. This is because producers have to take sustainability measures, which increase costs. “We want to be the best boy in the class in Europe, but that has a downside. For example, there are already surcharges on plastic. And there’s more to come. If farmers are bought out later, there will be less supply of milk. This causes the milk price to rise. There is also serious talk about a meat tax.”

Molenaar further states that the high energy prices in our country, which are largely made up of government levies, have an effect in every possible way. “Logistical costs rise as a result and that also makes the article more expensive for the consumer at the checkout in the supermarket.” According to Molenaar a simple economic law.

labels

Director Michiel Muller of web super Picnic is pleased that outgoing minister Adriaansens of Economic Affairs is having an investigation carried out. Since the beginning of this year, Picnic has been offering various ‘German’ products. It does have hooks and eyes. For example, in the Netherlands they must be provided with Dutch-language labels, the web super was told by the Dutch Food and Consumer Product Safety Authority. And that means a lot of extra work.

The plastic packaging around a 4-pack of Coca-Cola must be removed, each bottle is provided with a sticker with Dutch product information and then the packaging must be wrapped around it again. “A huge hassle.” Muller emphasizes that while the Dutch product information is available in the app.

The European Commission calculated in 2020 that consumers could save up to €14.1 billion if there were no more purchasing restrictions. Retailers would then have to pass the benefit on to customers in full.

‘Count out of your profit’

Sylvia van Rinsum from the border village of Didam now hardly visits Dutch supermarkets. “Three times a week I go to the Netto in Elten.” The Didamse has loaded 48 bottles of soft drinks into her cart. “It saves 0.80 euro cents per bottle. Just count your profit. I save 5 euros on a pack of tobacco. And here I lost 3 euros for 4 ounces of cheese. That really doesn’t work in the Netherlands anymore.”

When it comes to personal care products, Germany works with lower profit margins and residents from the border region have been going to Elten or Emmerich for much longer. Our country has more 1+1 free promotions, in Germany the basic prices are lower. And because of the Prevention Agreement, discounts on alcohol of more than 25 percent are no longer allowed. The promotional price of €10 for a case has been canceled since mid-2021.

The Dutch border entrepreneur experiences the consequences every day and sees the trek with regret. The Vakcentrum has been concerned for some time about the quality of life in the centers because of an accumulation of effects. The ban on tobacco sales from 1 July 2024 will also be added.

2023-08-07 19:36:42
#supermarket #border #cheaper #save #euros #afternoon

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