Peter Raju, President and owner of Peace Arch Duty Free, is facing one of the biggest challenges in the store’s history. The well-known duty-free retailer, located at the Peace Arch border crossing in Surrey, British Columbia, has seen an 80% drop in sales following Premier David Eby’s recent remarks to shop local while discouraging British Columbians from crossing into the U.S.
“We noticed an immediate impact after the Premier made his statement,” said Raju. “Today is the first day since then that I’ve even seen a lineup at the border, but people are still not coming into the store.”
The situation is dire. For most of last week, border lineups have been non-existent, an unusual sight for a crossing that typically sees a steady flow of travelers. “There were zero lineups. You could cross in less than five minutes,” Raju noted.
With fewer travelers following Donald Trumps remarks about Canada, sales have plummeted, and Raju has had to make tough operational decisions. “Our business is down substantially. We’ve had to reduce staffing, and if things don’t improve, we’ll have to close on weekdays,” he said. Currently, the store operates seven days a week with two shifts, but with no relief in sight, further reductions are likely.
Liquor Sales and Regulatory Hurdles
A major issue exacerbating the crisis is British Columbia’s liquor regulations. Duty-free stores in Canada must purchase alcohol through their respective provincial liquor boards, unlike their international counterparts. “This has been our biggest issue for over ten years,” Raju explained. “When Premier Gordon Campbell was in office, he reduced our markup from 50% to 20%, but now we need another reassessment given the challenges we’re facing.”
According to Raju, duty-free stores should be exempt from these restrictions. “We operate in a federally regulated, sterile zone. Once a customer enters, they cannot return to Canada with their purchase. There’s no reason for the Liquor Board to interfere in our business.”
Despite repeated efforts to engage government officials, Raju says his concerns have largely fallen on deaf ears. “We’ve tried reaching out to the Minister of Public Safety, but they won’t even return our calls. The Liquor Board won’t sit down with us to discuss these issues.”
Adding to the frustration is the competition from Alberta’s liquor market, where consumers can access lower prices without the same level of restrictions. “With interprovincial trade barriers, I could load up a truck in Alberta, drive back, and legally sell liquor for less. It makes no sense,” Raju said.
Tourism and Retail Implications
The decline in business at Peace Arch Duty Free reflects broader concerns for cross-border traffic amid Trump’s tariff threats. “We rely heavily on cross-border traffic,” said Raju. “If American visitors stop coming, it’s not just our business that suffers—it’s hotels, restaurants, and other retailers.”
Despite being Canada’s largest land border duty-free store, and the second-best land border duty-free shop in the world, Raju feels that government policies are stifling potential growth. “Why can’t we be left alone to double or triple our business? Why are these restrictions holding us back?” he asked.
The store, spanning 18,000 square feet with ample parking for 300 vehicles, has seen as few as 2,000–3,000 visitors in a week—a low figure given the facility’s size. “We’ve invested over $12 million into this business. We employ people. We should be given the opportunity to thrive.”
Looking Ahead: Will the Government Step Up?
Raju is calling for immediate policy changes to help stabilize the business. “We need an exemption from the Liquor Board. If they remove these restrictions, we can turn things around overnight,” he asserted.
He also points to the disparity in how duty-free stores are treated compared to domestic liquor retailers. “Duty-free stores shouldn’t have to pay fees that don’t exist anywhere else in the world. It’s a tariff on our industry.”
There’s a glimmer of hope, as media attention has begun to shine a light on the issue. “We’ve had national news coverage and even U.S. media attention,” Raju said. “Hopefully, this will put pressure on officials to reconsider.”
Until then, Raju remains focused on keeping his business afloat. “We’ll do everything possible to survive, but the government needs to recognize the damage being done. We retain Canadian dollars in Canada. We sell to Americans. This benefits the economy. So why aren’t we getting the support we need?”
Not really sure what the owner is looking for – the problem is that Americans have always had much cheaper liquor, including at places like Costco and Trader Joe’s. No Canadian retailer can compete with that. Even in Alberta, where liquor is much cheaper, the prices are still higher compared to driving across the border to Montana. They should diversify their product selection – this store is 80% liquor.
very true we should be duty and tax free like in every other country we have been requesting the bc governme to remove the 20 percent traffic imposed by the liquor board in order to allow duty free to compete with the domestic market we are not asking for any handouts
It seems like the owner is putting profit above their country.
During the summer months we cross this border once a week, usually on a Monday. I have never seen more than 10 cars in the parking lot. I’m not sure why the store was ever built so big and 300 parking spots?
summer time the parking lot is overflowing
the owner of the duty free shop Peter raju shoulnt be blaiming the Canadian government at all it is all due to the trump
and his tariffs
its a huge store i use to cross into the states one to three x a week not this year of course perhaps never again which i feel is a shame but its a new world now
as i passed by the store i would see one to two cars at that store
i been in that store i think twice maybe three times in my life time all about 8 to 10 yrs ago
i was with other people two of those times i didnt buy anything they made small purchases no alcohol once i made a small purchase
usually i dont stay long in the states just a day trip so purchases at the store wouldnt been good for me as i believe you need to stay over 24 hrs in the Usa
everyone store all Canada in trouble due to these tariffs not David Eby fault blame trump if you want to blame someone blame the right person
if you want and need Canadian help dont blame your own government and then want help
encourage shoppers have a sale put other stuff in your huge store other then 80% alcohol
no one really wants to go across the border right now
i know i dont
i can understand it will be a long road for awhile until these tariffs r lifted
hard times for everyone i feel for you but blame it on trump he is the only one responsible