Canadian border sales fall by 5% in 2004

John Rimmer

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Total sales at the country's border outlets were down by 4.8% year-on-year in the ten months to October 2004

A disappointing year in the Canadian border duty-free business was confirmed today as sales figures for the January-October 2004 period were released. Although 2003 was regarded as a disastrous year for the business owing to the SARS epidemic in Toronto and security concerns among US travellers, this year sales were down by 4.8% to C$156.6m ($131.6m) in the January-October period.

Sales in the key liquor category were broadly stable this year. Revenue from imported liquor and wines reached C$38.5m ($32.4m) to October, scarcely down on last year, while domestic liquor sales totalled C$19.4m ($16.3m), up from C$18.3m ($15.4m) in 2003. Sales of imported fragrances and cosmetics were slightly down on last year at C$23.1m ($19.4m), although sales of domestic beauty items reached C$1.3m ($1.1m), up by over 30% on last year.

The figures for 2004 reveal how the export tax on tobacco is continuing to hurt the border business. Sales of domestic tobacco products to October 2004 fell to C$33.8m ($28.4m), down by 15.2% on the previous year. International tobacco items fared little better, reaching C$7.6m ($6.4m), down by 12% on 2003.

Imported beer registered a significant increase this year, posting sales of C$201,135 ($169,021), more than double sales in the same period last year. Imported leathergoods sales were also up on last year, but jewellery, both imported and domestic, was down.