As international and domestic travel ramps up post-pandemic, Canadian airports are facing a new kind of turbulence—not in the skies, but on the retail concourse. Recent travel disruptions involving Air Canada have highlighted just how critical airport retail has become, not just for travelers seeking convenience, but as a growing revenue stream for airports and partner retailers.
Whether passengers are grounded by delays, rescheduled flights, or extended layovers, many are spending more time—and money—in terminals. That’s prompting renewed interest in the performance of Canada’s duty-free airport retail sector and the broader airport shopping experience across the country.
Duty-Free in Flux: How International Travel Impacts Sales
Duty-free retail in Canada, traditionally anchored by international hubs like Toronto Pearson, Vancouver, and Montreal-Trudeau, has rebounded steadily since travel restrictions were lifted. Retailers operating in these zones are increasingly tailoring their assortments to capitalize on emerging demand for luxury items, beauty, and regional goods.
According to the Tax Free World Association, the global duty-free and travel retail market is projected to reach over $70 billion by 2027. Canadian operators are part of this surge, with rising per-passenger spending—especially among U.S. and Asian tourists.
That said, fluctuating flight schedules and logistical unpredictability have added pressure. Retailers must strike a balance between high-margin, low-turn inventory (like watches or skincare) and fast-moving essentials (such as snacks or travel accessories).
Airport Gift Shops and the Local Retail Opportunity
Beyond international zones, domestic terminals are seeing new life as platforms for local brands. From Regina to Halifax, airport gift shops are evolving from touristy afterthoughts to curated showcases of regional identity.
Airports are increasingly partnering with Canadian artisans, food producers, and heritage retailers to offer travelers more meaningful options than generic souvenirs. Shoppers passing through smaller markets like Regina are still searching for authenticity—local maple syrup, hand-knit scarves, or airport-exclusive branded merchandise.
The strategy is twofold: improve customer experience and boost the airport’s non-aeronautical revenue, which now accounts for over 40% of total income in some Canadian airports, according to ACI World.
Air Canada and the Rise of In-Flight Shopping
Air Canada itself has been exploring new ways to engage passengers during extended waits and in-flight time. Its digital onboard shopping options have expanded, offering items ranging from travel tech to branded loungewear. While the model is still developing, it reflects a broader trend toward hybrid shopping experiences: online browsing, offline fulfillment, and cross-promotions tied to loyalty programs.
For airport retailers, this evolution poses a dual challenge—how to integrate into that ecosystem without losing foot traffic, and how to compete with airline-driven ecommerce strategies that can reach consumers even before they enter the terminal.
The Road Ahead for Airport Retail
From major hubs to regional terminals, Canada’s airport retail landscape is being reshaped by a confluence of shifting consumer behavior, volatile travel patterns, and digital experimentation.
As travel volume normalizes and airport dwell time remains unpredictable, retailers must prioritize flexibility. Digital kiosks, pre-order pickup, QR-driven inventory displays, and AI-assisted sales are among the tools airports are piloting to boost engagement—and revenue.
The growth of Canada duty free airport sales may be steady, but it’s clear that the new age of travel shopping will belong to those who can meet customers where they are, whenever their flight allows.
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