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FDFA Executive Director Laurie Karson: “Overall, the national sales figures have declined from this time last year. This can be attributed to gas prices, the (Canadian) Dollar, and continued confusion at border crossings over identification.” |
CANADA. Sales at the country’s land border duty free stores have been soft during the first five months, a pattern disappointingly continued in the usually bumper month of May. That’s the sombre picture to emerge from new Canada Border Services Agency (CBSA) figures revealed by the Frontier Duty Free Association (FDFA).
FDFA Executive Director Laurie Karson said: “It should be noted that the May sales statistics represent the “˜kick-off’ of the summer season for land border free stores – the high season for duty free sales.
“Overall, the national sales figures have declined from this time last year, and this can be attributed to gas prices, the (Canadian) Dollar, and continued confusion at border crossings over identification. However, the Western sales figures nationally from this time last year have increased (i.e. Alberta, and British Columbia stores) due to a strong economy in that area of the country.”
National sales figures decreased by approximately C$2.6 million year-on-year or -4.78% for January-May 2006. For the month of May 2006 alone, the sales figures also saw an overall year-on-year decrease of around C$1.2 million.
Overall sales figures nationally for January/May 2006 were C$52.8 million. Tobacco (mainly Canadian brands), worth 31% of the mix, declined by -8.6% to C$15.7 million. The other key category, wines and spirits (38.1%) fell by -2% to C$20.1 million.
For May 2006 the only national sales increase was in the leathergoods category.
Overall the main categories that dominated sales in land border duty free (based on sales mix %) for January-May were:
1. Liquor/Wines (38.1%)
2. Tobacco (31%)
3. Perfume/cosmetics (13.8%)
4. Food (4.6%)
5. Jewellery (2.1%)
Regional sales analysis – Canadian land border duty free
Prairie Region
• Overall the Prairie sales figures decreased during January-May by approximately C$23,000 or -0.66% compared with last year to C$3.5 million. For the month of May 2006 compared to May 2005, sales dropped by C$16,000.
• Sectors to post an increase in sales for the period were tobacco, food, souvenirs, and the “˜other’ category.
• For May 2006, the Prairie stores’ sales increases were in the liquor, tobacco, other, leather, food and glassware/crystal categories.
• There were slight decreases noted in all other categories.
Pacific Region
• Overall the Pacific stores’ sales figures increased by approximately C$178,000 or +3.0% for the five-month period to C$6.1 million. But for the month of May 2006 sales dropped by around -2.02% or C$30,000.
• Categories to register increases in sales for January-May were tobacco, souvenirs, food, arts/crafts, liquor, beer, jewellery and clothing.
• For May 2006 alone, beer, tobacco, perfume and clothing posted higher sales.
• There were slight decreases noted in all other categories.
Ontario
• Ontario sales decreased by approximately C$2.9 million (-5.4%) to C$34.5 million for January-May compared with the same period in 2005. For the month of May a fall of C$857,000 or -9.6% was experienced.
• Beer, leathergoods and the “˜other’ category grew.
• For May alone, leathergoods was the only growth category.
• There were slight decreases noted in all other product sectors.
Atlantic Region
• Atlantic sales figures decreased by approximately C$22,000 (-2.7%) for January through May to C$780,828. For the month of May sales figures dropped by around -10.3% or C$20,000 across all stores.
• Categories to grow during January-May were beer and the arts/craft/carvings sector.
• For May beer, perfume, leathergoods, and food posted increases.
• There were slight decreases noted in all other categories
Quebec
• The Quebec sales figures decreased by approximately -8.5% (C$908,000) for the five months to May to C$9.8 million. For the month of May sales dropped by C$295,000 year-on-year, a fall of -10.3%.
• Jewellery was the only category to defy the downward trend in the first five months.
• Jewellery and the “˜other’ category both grew in May.
• There were slight decreases noted in all other categories
FOOTNOTE: The 22nd Annual Convention of the Frontier Duty Free Association will be held in Niagara Falls, Ontario on 12-15 November. For details go to www.dutyfreecanada.com or e-mail frontierdutyfree@bellnet.ca
MORE STORIES ON THE CANADIAN LAND BORDER TRADE
North America’s largest duty free border shop opens – 19/07/06
Canadian tourism body calls for delay in implementing new cross-border passport rules – 23/03/06
