Canadian border sales slide to 1999 levels

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A year of slow tourism has hit border operators with a 13.7% decline in sales for 2003

Canadian border stores have reported a 13.7% decline in sales over 2003 as a result of a drop in tourism following SARS, BSE, forest fires, floods and the most widespread blackout in north American history. Total sales reached C$194.8m, the lowest since 1999. Strained relations with its southern neighbour and a comparatively strong Canadian dollar also discouraged US holidaymakers, traditionally accounting for around 55% of the stores' sales.

Tobacco and liquor (excluding beer) remain the staples of Canadian border business, representing around 35% and 29% of sales respectively. Fragrances represented over 15%, food and beer both accounted for around 5% and souvenirs, jewellery and glass, china & crystal each accounted for around 2% of total sales. Just under 52% of all products sold were imported.

Prairie region sales increased slightly as a result of excise and taxation anomalies, while sales declined in all other regions.

Earlier in the year one operator called 2003 trading conditions ?the perfect storm?, and several have taken advantage of the quiet period to renovate or extend their stores.