“An opportunity for change:” Canada’s land border retailers assess future of FDFA event

CANADA. The 31st annual Frontier Duty Free Association (FDFA) Convention began on Sunday in Toronto, with the future of the event among the big themes debated at the Operators’ Meeting that kicked off the event. The Moodie Davitt Report is attending the event, which runs from 13-16 November.

Speaking at the Operators’ Meeting on Sunday, FDFA Executive Director Laurie Karson said: “We have the opportunity to change things and change can be positive. The business landscape has changed, and we face questions about show numbers, revenues and attitudes towards our event, both internally and among other stakeholders. If we were to restructure it, what would an ideal convention look like? And what would you as operator members want from it?

“Is this event about revenue, about supplier relationships, about networking? We need to have a conversation about analysing what we do next and then implementing the vision we decide on,” added Karson.

As reported, FDFA is launching a Strategic Review of the Convention. That review should be concluded in early 2017.

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This year’s FDFA Convention takes place close to some of Toronto’s great city landmarks

Key themes raised were:

*How to deliver better value for retailers and suppliers from the meetings, ensuring suppliers’ time is used efficiently

*Where the show fits into a changing business landscape

*Allowing more of the country’s liquor boards to formally attend

*How sponsorships will look in future; tobacco companies are a traditional and continuing source of support for the show; a concern is how sponsorships can be made sustainable when the show is reliant on one under-threat category

*The question of how best to use the trade floor when most big brands use suites

*How to attract new suppliers

*Developing a conference or workshop element

*Assessing the Gold Standard Awards programme

*Ensuring the Convention is better marketed

*Deciding on location; Toronto generally attracts the highest attendances

The debate delivered some candid contributions from retailer members.

There were concerns about falling membership – this year, for example, Peace Bridge, Peace Arch and Peninsula Duty Free are among the high-profile non-attending land border operators. Some members expressed concern that suppliers would pull out if FDFA could not ensure all operators attended.

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Some argued that the show should not include a weekend component so it could attract more government officials.

Others felt that the key decision makers at the major brand houses did not see the show as relevant or important enough.

Others noted that the length of the show was a problem for suppliers, and that it could be made shorter with more collective meetings by members.

Widening the debate, the perennial issue of whether Canadian land border retailers should consider buying together was raised again. FDFA members could command better prices from suppliers if they sought to buy as one, noted several. Such a move has been mooted for years though previous efforts to consolidate buying have failed.

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FDFA Executive Director Laurie Karson outlines the Strategic Review issues to members on Sunday

The crucial issue of whether FDFA should combine its convention with that of IAADFS and ASUTIL was also raised. One option could be the creation of a ‘Canada Pavilion’ showcasing regional brands at a new-look Americas show.

Karson said: “Do we want that to be part of a larger show? Would we lose our Canadian identity? Would we lose many of our small suppliers? We know many suppliers only want one show but I feel we need to design our show around you, the operators. We should look to update our own event.

“But we need your voice about what direction change should take. You have a responsibility as stakeholders to help frame the debate.”

In related developments, the FDFA members voted to change from a traditional seven to five board members in the future.

For the period 2016 to 2018 the new board will include Philippe Bachand (Boutique Hors Taxes de Highwater), Cam Bissonnette (Osoyoos Duty Free), Tania Lee (Blue Water Bridge Duty Free), Simon Resch (DFS Ventures) and Abe Taqtaq (Windsor-Detroit Tunnel Duty Free).

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