Struggles of Canadian Duty-Free Stores Amid Ongoing Border Restrictions

Struggles of Canadian Duty-Free Stores Amid Ongoing Border Restrictions

Canadian duty-free stores at land borders with the United States are facing significant challenges as ongoing border restrictions have severely impacted sales, leading some owners to consider closing their businesses.

Decline in Sales

The stores, which heavily rely on American tourists and travelers, have experienced a drastic decline in sales since the pandemic began. Many store owners are increasingly worried about their livelihoods as they confront mounting losses.

  • "It’s been tough," said one store owner who wished to remain anonymous. "We’re doing everything we can to stay open, but it’s getting harder by the day."

The impact of these restrictions is particularly felt across the border regions of Ontario and Quebec. Store owners express concern that without a way to adapt, many will be forced out of business.

  • "We’re trying our best," said another store owner, also wishing to remain unnamed. "But it’s getting harder every day."

Adaptation Strategies

Some larger chain stores have managed to adapt by shifting their focus towards online sales and shipping products directly into American states where possible under current regulations. However, many smaller, independently-owned businesses lack the resources or infrastructure necessary for this type of shift, making it difficult for them to compete with larger chains that can offer more competitive prices and wider product selections online.

  • "I don’t know how much longer we can keep going like this," said a store owner with over 20 years in business. "It’s just not sustainable."

Uncertain Future

The future remains uncertain for these duty-free stores as they await changes in government policies that would allow more people to cross the border freely again.

In an effort to mitigate their losses, some store owners have turned their attention towards online sales, shipping products directly into American states where possible under current regulations.

  • "We’re trying everything we can think of," said one store owner who is considering closing his business due to a lack of revenue from tourist traffic. "I’m scared I won’t make it through next year."

As long as there is no change in government policy, hope appears dim for these businesses. Store owners believe that even if travel restrictions were lifted immediately, most Americans would still need time to adjust to new rules surrounding COVID-19 vaccination requirements before returning to Canada.

They note that while U.S.-Canada land borders reopened last month after nearly two years of closure, only fully vaccinated travelers are allowed to enter the country without quarantine. Many Americans may still be hesitant to get vaccinated or show proof of vaccination status before traveling north, which could result in months more of lost revenue for duty-free shops along the Ontario-Quebec border region.

For now, all anyone can do is wait and see what happens next.

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