Raju takes Douglas stake

Gavin Lipsith

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RavenFox.com speaks to Peace Arch Duty Free Shop president Peter Raju and Douglas Crossing Duty Free president Michael Beler about the deal that paves the way for a new permanent store at the border site

Douglas Crossing Duty Free president Michael Beler has sold a minority stake in the Canada-US border store to Peace Arch Duty Free Shop president Peter Raju. The deal follows almost six months of negotiations and will result in Raju overseeing operations of the store as part of a management contract, with consent from both parties needed on staffing, debt, capital and expansion issues. Both parties hailed the agreement as being the best possible outcome for duty-free retail at the British Columbia site.

The company, which is now registered as Douglas Crossing Duty Free trading as Peace Arch Duty Free Shop, aims to replace the current temporary outlet with a permanent store by November 2005. The planned 25,000sq ft (2,323sq m)building will include 15,000sq ft (1,394sq m) of retail space, a 4,500sq ft (418sq m) lobby and promotional area and a 5,500sq ft (511sq m) warehouse.

Beler told RavenFox.com that he was confident the deal was the best scenario for all concerned. "The new facility will be built next year, the staff will have a new building to work from, and the industry will get a new life in the west," he said. "We have built a solid team since we opened last year and I am sure they will help Peter make the new store a success."

Raju added that he would be focusing on building capture rates at the site, and said that traffic was already increasing. "From next week we will be launching an aggressive media campaign on the Canadian side of the border, as the strong Canadian dollar means most of the travellers originate here at the moment," he told RavenFox.com. He pledged aggressive promotional activity on liquor and tobacco, within the restrictions placed on those categories, in order to target Canadian customers.

Beler was awarded the contract at Douglas Crossing and began operations at the site last November following several disputes with landlord Semiahmoo First Nation and Peace Arch Duty Free, which had bid unsuccessfully for the tender. RavenFox.com understands Beler has returned to his family home in Ontario, although he remains an executive director of the Douglas business.