An extensive renovation of the Niagara Duty Free store in Ontario reflects a shift in attitude for land border duty frees in Canada, say Ashley Mindorff and Joel Stevenett of design studio Deschine, which was responsible for the interior design of the project. The level of design has been raised to that of airport locations and operators are now focused on customer experience.
Duty free retailing along the Canadian border with the eastern United States has come of age in recent years. Historically, land border duty free stores at the 49th parallel have more closely resembled highway rest stops, than their sleek airport counterparts. Thankfully, operators are abandoning their utilitarian past in favour of dynamic retail environments where luxury goods look at home.
The shift has resulted in an enhanced customer experience at the recently renovated Niagara Duty Free (in Niagara Falls, Ontario), one that uses educational touchpoints to introduce unique local products and entices customers with the prestige of global brands.
Pressed into action
All photos: Jon Evans Photography
An increase in international tour groups arriving by coach, an exchange rate that favours American shoppers, and uncertainty regarding the future process of lease renewals between bridge and tunnel commissions and store operators (as previously reported in The Moodie Davitt Report) gave impetus to enhance the customer experience.
Competition for tour groups visiting Niagara Falls and the wineries of historic Niagara-on-the-Lake is fierce. Three duty free shops lie along a 40km stretch of the Niagara River, between the province of Ontario and New York State. Two out of three have undergone extensive renovations in the past two years. The third is set to begin construction after a contentious RFP was issued in 2015 and ultimately awarded to the incumbent.
General Manager Steve Richardson noted: “We believed that this type of investment would justify an extension in our lease…as there was growing uncertainty regarding the future process of lease renewals brought about by outside developments in our industry.”
Leveraging experiential retail to highlight local products
The province of Ontario produces an annual average of 850,000 litres of icewine, representing 90% of Canada’s production, according to Wine Country Ontario. Niagara Duty Free sells more icewine than any other land border duty free in the country. With help from its design studio, Deschine (in partnership with TSM Custom Millwork Ltd.), Niagara Duty Free completed a considerable renovation that celebrates this delicacy.
A significant portion of the 510sq m footprint is dedicated to a sparkling icewine feature, where local wineries are highlighted at a circular tasting bar. Brands have the opportunity to connect directly with customers, educate on the unique harvesting process and encourage groups to implement the knowledge they acquired on their winery tours to discover new products.
The growing category of craft beer has been given prime real estate among the large national brands, representing several local breweries including Steam Whistle Brewing and Muskoka Brewery.
Emphasising lifestyle for premium global brands
In contrast to the icewine feature, lower light levels, dark woods, polished metals and dramatically lit vitrines draw customers into the lounge-like atmosphere of the Scotch, Cognac and Cigars area. The finishes are a nod to Niagara Fall’s heyday in the 1950s and 60s, interpreted in a contemporary way.
An increased interest in ultra-premium liquor and rare cigars, both in terms of sales and as objects of interest for curious customers, inspired a vitrine and a full-height, four sided humidor. These displays are alongside customised fixtures for premium global brands, rather than being set aside, to encourage exploration across all price points.
Family-friendly destination
The last point on the customer path is the playful fashion accessories area, inspired by the midways and water parks of Niagara Falls. Through a clementine orange portal, customised Swatch, Swarovski and sunglasses displays are visible. An integrated media screen in the portal showcases local and international fashion brands, inviting customers into this previously under-used section of the sales floor.
Local and Canadian jewellery brands are prominently featured. A biography of each designer, a brief description of their approach and links to social media are included to connect with customers.
What the future holds
While low prices, global brands and travel exclusives were enough to guarantee profits in the past, the future will require a considerably more advanced approach to retailing. General Manager Steve Richardson said: “While we are a duty free operation with a unique customer base, it is important to stay current within the industry and expectations of today’s consumer.”
By prioritising customer experience, offering unique products and engaging customers at all points of the journey, Niagara Duty Free has already experienced a rise in sales and is confidently leading the new wave of land border duty free in Ontario.
Deschine is a retail & hospitality design studio that specializes in travel environments. It helps clients create dynamic retail and restaurant spaces, answer requests for proposals and refresh their existing locations with a brand update. Please visit deschine.com for more information.
