Off-tax shops have continued to suffer since Canadians avoid traveling to the United States, which has led to the closure of at least one shop so far in New Brunswick.
John Slipp closed his shop outside Woodstock taxes this month. The decrease in traffic at the Canadian-American border border border has brought a fatal blow to its shop, already weakened by the Cavid-19 pandemic.
Mr. Slipp had taken over his father’s out -of -tax store in 1994, which had been opened more than ten years earlier.
Now 59 years old, he said he will have to find another source of income and pleads for increased government support for his shops.
Fewer and fewer Canadians have gone to the United States in recent months due to US President Donald Trump’s trade war with Canada, his declarations on the country’s annexation and travelers fears about border treatment.
In the outdoor shops sector, a drop in attendance at the border is directly linked to a decrease in sales, said Slipp.
“It was very difficult. The company has experienced many good years. I certainly did not want to end my career, abandon, drop everything, both personally and in relation to my late father, ”said Mr. Slipp.
In the early 2000s, at the height of its activity, the store had about fifteen people. In March 2020, the owner dismissed four people and reopened after the pandemic with two employees.
At the end of the summer of 2021, the out -of -tax shops “all left from zero to rebuild”, according to Mr. Slipp. At the end of 2024, his activity was still down approximately a fifth compared to 2019.
Then Donald Trump returned to the White House. From January to April, the situation deteriorated for Mr. Slipp’s store, who finally decided to put the key under the door to the drop in sales and attendance.
“I realize that, even after the changes of American administration, in our sector, we do not expect that border traffic changes overnight. We think it will take years, ”he said.
A decrease for months
According to Statistics Canada, return trips from the United States further decreased in July, Canadians continuing to give up trips to the United States.
The number of Canadian residents returning from the United States by car decreased by 36.9 % on an annual basis in July, marking the seventh consecutive month of decrease over one year.
Barbara Barrett, director general of the border association outside taxes, stressed that the stores that her association represents feeling the drop in traffic for months.
“I would describe our sector as being in the midst of a crisis, and we have said it for several months now,” she said.
The association indicated that sales of out -of -tax shops have dropped 40 to 50 % compared to the previous year throughout the country since the end of January, and up to 80 % in distant border posts.
Ms. Barrett added that out -of -tax shops are often a microcosm of the situation on the border.
“This should be our busy summer period, but this is not the case; The traffic in parking lots is up to the one during the pandemic, which led to the closure of a store in the East. We unfortunately fear other closures as the end of summer approaches, ”she said.
Unlike airport stores, which often belong to international companies, all stores located on land borders are independent and often family companies, said Barrett.
While Canadians avoid travel in the United States, travel expert Claire Newell has argued that many are opting for national and international destinations.
“We live in a country where interior travel is still very expensive. And even if many people choose to travel to Canada, we also see more and more people heading for popular destinations, “she said.
She added that she did not see the Canadians return to normal before the conclusion of a trade agreement “which seems fair”.
Advocacy to change the rules
While the drop in border traffic weighs on the industry, Ms. Barrett pleads in favor of “slight regulatory changes”.
“Believe it or not, our products are subject to taxes which, in a sector excluding taxes and customs duties, are nonexistent among our American competitors. We therefore ask that these taxes be changed to increase our competitiveness, ”she said.
“We also ask to be eligible for some of these pricing reduction programs or support measures in the event of a pandemic, like what was done during the pandemic with salary subsidies or rent subsidies,” she said.
Ms. Barrett said that the government owns many out -of -tax shops and that a postponement or a rent subsidy would help the sector until the trips are normalizing. She added that discussions had taken place between her organization and senior officials.
According to Ms. Barrett, the latter agreed that the association made “small requests” to support the sector.
A press release from August 2 announcing the closure of the off -taxed Taxes store of Woodstock mentioned that the federal and provincial governments had promised pricing reduction programs to help companies affected by trade tensions.
“I had placed a lot of hope in these initiatives when the two levels of government made these announcements. This reminded me of the support programs related to the pandemic, “said Mr. Slipp, adding that his business had benefited.
It is now focusing on promoting rent postponement programs for out -of -tax shops that rent land in the federal government or a transitional authority, as well as on loan programs for out -of -tax shops.
Regarding the future of the sector, he judges that the prospects “are not pleasing”.
“I cry the loss of my business, but I also accept reality: the commercial context has changed and nothing suggests a positive development in this short and medium term sector,” said Mr. Slipp.
“I regret not having succeeded and having to put an end to this company that my father and I have built and for which we worked so hard for so many years,” he said.