Latest news with #WoodstockDutyFreeShop
CTV News
9 hours ago
- Business
- CTV News
‘May not make it through the end of summer': Canada's duty-free shops struggling amid drop in cross-border travel
A sign for a duty free store at the Canada/U.S. border crossing in Saint-Bernard-de-Lacolle, Que., on Thursday, April 10, 2025. THE CANADIAN PRESS/Graham Hughes A duty-free shop at a New Brunswick border crossing is shutting down after more than three decades in business, with its owner warning that more closures could follow as Canada's trade tensions with the United States continue to strain cross-border traffic. John Slipp, owner of the Woodstock Duty Free Shop in Belleville, N.B., says he plans to close his store within the next six weeks, citing plummeting sales, a drop in Canadian travellers, and the lack of federal support. 'Canadians are not traveling across the border in anywhere near the numbers they normally would be,' Slipp said in an interview with CTV News Channel on Saturday. 'At the end of last year, we were down 20 per cent from 2019, still climbing out of the COVID hole. Now, we're talking 50, 55 to 60 per cent down versus 2019, which is the benchmark.' While American visitors are welcome, Slipp says his business is heavily dependent on Canadian travellers. 'Canadians are eligible and qualified to shop in a Canadian land border duty-free shop. They are the foundation of our business,' he said. 'And when you remove the tourism season in the summer months, we rely on those Canadians, who are no longer crossing the border.' The Frontier Duty Free Association, which represents 32 duty free stores across Canada, says many of its members have seen revenue drop between 60 and 80 per cent due to a slowdown in cross-border traffic and tourism. In June, the association joined 15 border-town mayors in calling for financial support from Ottawa and the alignment of tax and export rules to match American duty free policies. Slipp says he's spent the past year trying to manage with fewer resources and searching for government help. 'We certainly have been spending less money and trying to manage in a way that would allow us to extend life, if you would, and working with our trade association... to try to get government assistance,' he said, noting that his shop was closed for a year and a half during the pandemic and received some support at the time, under an emergency order, but that assistance has not been renewed. 'We've been asking for the ability to close temporarily and reopen,' he said. 'And for those of us that lease our land from the federal government, we've been looking for assistance, like rent deferral, which they did during the pandemic, but so far, there's been nothing on that front either.' Slipp says unless conditions improve quickly, more shops like his are at risk. 'Unless there is some miracle in the near future, it appears that my business, and I think probably another half a dozen Canadian land border duty-free shops, will not make it to the end of the year,' he said. 'Some of us may not make it through the end of the summer.' With closures looming, he's urging both the federal government and Canadian travellers to take action before it's too late. 'For many Canadians I'm sure they have appreciated the opportunity to receive the service and the tax-free goods, currency exchange, and the opportunity to spend their Canadian money in Canada,' he said. 'You're about to lose that not just at the Woodstock-Houlton border crossing, but at a number of border crossings across the country.' That's why, he says, the time to act is now. 'I would urge Canadians, if you are going to be crossing that border, keep your money in Canada. Spend it at a local Canadian duty free shop (and) help these businesses gain more life.'
Global News
2 days ago
- Business
- Global News
Duty free shop in N.B. to close after 31 years due to drop in cross-border shoppers
After more than three decades in business, the owner of a New Brunswick duty free shop says he has no choice but to close down within the next six weeks. Ongoing political tensions between Canada and the United States, and a trade war sparked by President Donald Trump's tariffs, have meant fewer cross-border tourists and visitors. John Slipp, who runs Woodstock Duty Free Shop in Belleville, N.B., says prior to the COVID-19 pandemic, he saw upwards of 200 people in his shop on a summer day. Now, he gets about 20. 'Back in 2017, I was starting to kind of think and talk out loud about retiring in 10 years from then,' he said. 'Because of COVID and the current situation, those retirement plans are out the window. We've had to spend personal savings to in order to manage.' Story continues below advertisement At the age of 59, he says he has no choice but to find other employment once he closes up the duty free shop. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy As a lifelong resident of the New Brunswick border town, which borders with Maine, Slipp says he could never have imagined Canadian-American relations would ever reach the point they are at now. 'Americans, interestingly enough, have more apprehension about the border … The immigration enforcement activities in the United States has created a fear for many about travelling and about the border experience,' he said. '(Meanwhile,) Canadians are angry. Canadians are reluctant to go.' 'It's catastrophic' Slipp's experience isn't isolated. According to Statistics Canada data, return trips from the U.S. by car are down 33 per cent compared to June of last year. This is having a devastating impact on sales at duty free shops, whose regulations prohibit them from making domestic sales. 'Our industry is an export only business and we rely 100 per cent on that traffic going over the border,' said Barbara Barrett, the executive director of Frontier Duty Free Association. 'So when you drive into the parking lot of a land border duty free stop, you absolutely have to exit into the United States and all of our product goes directly into the Unites States.' Story continues below advertisement 1:45 'Don't be a stranger': Maine governor trying to woo back Maritime neighbours She says duty free shops across Canada are seeing freefalling sales and some of them are having trouble keeping the lights on. A recent survey conducted by the association found a third of their stores could close if they don't receive support from the federal government. 'We've been a part of the Canadian tourism fabric for over 40 years now. When we lose them, we're not getting them back,' she said. 'That would be a tremendous shame. So that's where we're at. It's catastrophic.'
Hamilton Spectator
09-06-2025
- Business
- Hamilton Spectator
Border traffic freefall jeopardizes duty free shop
Mayor, MP joins national call to help border stores survive John Slipp says 'traveller anxiety' is not how the Woodstock business owner wanted to celebrate the 40th anniversary of the Woodstock Duty Free Shop Inc. Canadian reaction to President Donald Trump's annexation threats, chaotic tariff announcements, and increased border scrutiny add up to a dearth of visitors driving by his Woodstock Duty Free Shop en route to the Houlton, Maine border crossing and an uncertain future for his store. 'We have no plans for our anniversary. Given the conditions we are in, there's not much to celebrate at the moment. It's kind of bittersweet. It was a very special time 40 years go when Dad opened the business…. It's sad to see it all come to an end,' Slipp said. No traffic means no business for The Woodstock Duty Free Shop, a dilemma repeated at 32 land border duty free stores across Canada. The Frontier Duty Free Association, a national association of land border duty free shops, conducted a March survey of owners on how long they could remain open under the current climate. Slipp and one-third of the other store owners said three to six months. 'I have been talking to other colleagues at other crossings with stores that are similar in size and have similar concerns… Canadians are not looking to travel to the United States… We are also finding that Americans are experiencing border anxiety as well because of the immigration enforcement in the United States. A lot of Americans don't want to be anywhere near a border,' Slipp said. 'This is not just this border crossing, it's nationwide.' Woodstock Mayor Trina Jones said the Woodstock Duty Free Shop 'offers a critical role' for local tourism, offering visitors a tax-free way to buy Canadian and locally made goods and products that promote Woodstock, New Brunswick, and Canada. 'It's especially important since there is no longer a (provincial) tourist bureau operating at our border location. John Slipp and his staff offer that one last chance for those visiting our area, or passing through, to purchase goods that promote us and boost our economy,' Mayor Jones said in an emailed statement. When the Liberal government announced counter-tariffs on U.S. imports to combat the American tariffs placed on Canadian exports, Prime Minister Mark Carney said the Canadian tariff revenue would help businesses affected by the trade war. Richard Bragdon, Tobique-Mactaquac Conservative MP, said counter-tariffs should support duty free shops. 'Our duty free shops like the one in Woodstock, have taken a big hit over the last several years. They just started to recover coming out of the challenges they faced during COVID, to then be affected by the tariff situation with the United States,' Bragdon said in an emailed statement. 'Funds received through counter-tariffs should be used to support affected industries which includes duty free shops.' Four decades at the border Slipp's father, George, opened the store on June 1, 1985, after the Canadian government announced licensing land border locations for duty free stores to sell goods tax and duty free to travellers leaving the country. John Slipp started working at the family business 31 years ago. 'It's been a good business most of the time. But between COVID and the tariffs, it's a different world here.' Slipp once employed 15 people at the store, which was open seven days a week, selling alcohol and tobacco products, local arts and crafts, local maple syrup, clothing, perfume and other products. The store also offers currency exchange for visitors. Now, the business owner mans the store himself, which is closed on Mondays. Slipp isn't alone. CBC reports that duty-free shops across the country have experienced massive drops in business in recent months. United States Customs and Border Protection data shows travellers entering the United States from Canada dropped almost 850,000 visitors in April. 'These businesses are not in this position because of bad management or poor decisions—this is a crisis not of their making,' said Barbara Barrett, Frontier Duty Free Association (FDFA) executive director, a national organization representing the land border shops. 'From the pandemic border closure to the current impacts of U.S. tariffs and travel disruptions, duty free stores have been disproportionately impacted at every turn. The government has committed to supporting businesses hurt by these challenges, and we are simply asking for targeted, reasonable support to prevent the permanent loss of these local employers. Our ask is modest, but the need is urgent.' Recent FDFA data shows 60 to 80 percent revenue losses at many stores. On June 3, the association joined with mayors from border communities to release an open letter to Prime Minister Carney and Minister François-Philippe Champagne asking the federal government to act now to prevent the permanent closure of Canada's land border duty free stores. 'These are not multinational chains—these are our independently-owned, family-run stores, and in many small border communities, we are the main employer,' said Tania Lee, FDFA president and owner/operator of Bluewater Bridge Duty Free. 'Our stores are an integral part of Canada's tourism fabric and border community economies, sustaining jobs and supporting the towns we call home. Today, many of us are just weeks away from closing our doors for good.' Both federal and provincial politicians have told Slipp they want to help, but he's worried about how long it will take to develop an assistance plan. 'Newly-elected cabinet minsters and members are just trying to find their way… It takes a while to get things approved. We're happy that the talking points are positive.' Slipp said the federal government introduced a lease deferral program when the duty-free stores were weathering the COVID travel ban. Slipp owns the store building, but the land is leased from the Canadian Border Services Agency (CBSA). Allowing duty free store owners to delay lease payments would be helpful. He suggested allowing duty free shops to close temporarily without any penalties and assisting with employees' wages and benefits to keep the business afloat. Slipp is worried the trained employees he had to lay off won't be available to return to work if the slowdown continues. He said using counter-tariff revenues to pay for the assistance makes sense. 'We have reminded the government that was one of their pledges and we would like to participate. The politicians speak positively and provide hope, but it is just taking too long.' 'Local tourism boost' Slipp said that when the federal government created the duty free program, licenses were awarded to local, independent, and private Canadian businesspeople. The shops had to be local stores, not large national corporations or franchises. 'The stores would capture some of the money Canadians would be spending in the United States but also capture American money from Americans returning home buying gifts or souvenirs,' he said. 'The duty-free shops are designed to promote local tourism and capture the money that would otherwise be spent in the United States to support our local economy.' Federal rules require that anything sold at a duty-free shop immediately leaves the country of origin. 'We are an exporter, because everything we sell is exported. We are not allowed to compete with local domestic retailers… Local Woodstock residents cannot come here to purchase goods and return to Canada without paying tax. That wouldn't be fair,' Slipp said. 'Americans visiting our shop have a $200 (U.S.) daily tax exemption. We encourage them to shop here and the local area.' Jones is a member of the Mayor's Border Alliance for Canada. She said border mayors are advocating with the Frontier Duty Free Association for proper federal and provincial support. 'Duty free shops have a unique challenge in that federal regulations prohibit them from selling their products here locally… I would encourage anyone in Woodstock, and all Canadians, who are still choosing to travel to the U.S. to consider stopping at the Woodstock Duty Free Shop on their way to the states to purchase goods to help them get through this tough period,' Jones said. 'We encourage the federal and provincial governments to provide financial assistance to the duty-free shops, similar to the supports provided during the pandemic, to help keep them going during this time.' Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
