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Surrey duty free shop struggling under trade war threat

Lack of border travel, price mark-up could result in store closure
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Peace Arch Duty Free Shop's owner says the business is struggling with the fallout from the U.S.-Canada trade war. (File photo)

As U.S. President Donald Trump's tariffs on Canada take effect, businesses are starting to feel the pinch.

For Peace Arch Duty Free Shop, the fallout from a Canada-U.S. trade war is the latest in a series of blows to its business, including low border travel, a 20 per cent markup from the BC Liquor Distribution Branch and the nearly two years of closure during the pandemic.

Since the announcement by Trump to impose tariffs on Canada and other countries, border travel has seen a decline 香蕉视频直播 and many predict that decline will continue.

Peace Arch Duty Free operator Peter Raju said his business, which has been in operation for the last 40 years, is definitely feeling the effects.

"We are averaging about eight or nine customers a day. Can you believe that for a store our size?" Raju emphasized, adding that meanwhile, border line-ups are often sparse as the provincial government has urged residents to reconsider travel plans to the U.S.

Raju said he is battling the "survival of his business" after BC Liquor has imposed a 20 per cent markup on his store. This threat to the operator's business has led him to request meetings with the branch, which he says have gone ignored.

"There is no logical reason for the BCLDB to impose this excessive 20 per cent mark-up on duty-free liquor, especially given that these stores do not compete in the same market as domestic retailers," a press release from Raju stated.

His store is also competing with less expensive liquor on the American side and inventory shipped into B.C. from Alberta, he added.

According to Raju, the Branch has stated that the mark-ups being imposed on duty-free shops are some of the lowest in the country, but that does not make it easier on his business.

香蕉视频直播淏.C. duty-free shops primarily serve the travelling public, especially residents of Washington state, and do not sell to other Canadian markets,香蕉视频直播 Raju said, noting that duty-free shops are a unique market in comparison to other shops.

As the steep mark-ups make prices at the shop non-competitive, Raju says the measure will continue to take a toll on his business, possibly resulting in a shutdown of the store.

The operator has had to let go of staff in the last month and says he is now losing more money each day than he is making while open.

When asked during an interview how much longer he sees the business surviving, Raju said: "Until the bank calls me, any day."

Raju is also struggling with the push to remove American liquor from shelves 香蕉视频直播 a retaliatory measure against U.S. tariffs 香蕉视频直播 as his business has already paid for the inventory.

"Why should we put that on the shelf? Why can't we sell the liquor and then just not order more?" he said.

Raju also says he has requested meetings with Premier David Eby and B.C.Public Safety Minister Garry Begg but has not heard back.

"Eby goes out there and says they're going to support businesses, but we are not being supported.

"It's deeply frustrating that my repeated attempts to bring this issue to the attention of the government have gone unanswered," he added.

Peace Arch News has reached out to the BC Liquor Distribution Branch for an interview.



Sobia Moman

About the Author: Sobia Moman

Sobia Moman is a news and features reporter with the Peace Arch News.
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