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Canadian border sales show slight decreaseCanadian border sales show slight decrease
Andrew Pentol
14-Nov-2008
Year-on-year sales at Canadian border stores registered a small decrease in August, with sales falling in the Ontario and Prairies regions
Canada’s border store retailers recorded a slight decrease in trading results in August 2008, according to the Canada Border Services Agency. Year-on-year sales fell by 1.4% to C$19.1m ($15.6m) and regional sales decreases were also registered in the Ontario and Prairies provinces.
The Frontier Duty Free Association (FDFA), which represents Canadian border store operators, attributed the decrease in sales to congestion at land border crossings with the US as a result of tighter security checks, confusion over identification requirements, high petrol prices, the effects of the global economic downturn in the US and the decline of traveller numbers from the US to Canada.
Land-border duty-free sales suffered an even greater sales decrease from January to August compared with the same period last year. Sales fell by 7.9% to C$92.1m ($75.6m), with sales in the electronics category suffering the most significant decrease of 34% to C$49,300 ($40,500) from C$74,200 ($60,900) in 2007.
At Canada’s airport duty-free stores, sales were up 19.6% to C$19.4m ($16m) in August compared with the previous corresponding period, with sales in the food category rising an impressive 141% to C$4.2m ($3.4m). Sales at airports from January to August compared with the same period last year rose 15% to C$123m ($101m).
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