Vancouver International Airport (YVR) is undergoing a transformation aimed at redefining the travel retail experience with a newly renovated and expanded duty-free offering that blends international luxury with locally sourced products. Managed by Dufry (now part of Avolta), the upgraded Vancouver Duty Free spans a substantial 30,000 square feet across two international post-security walkthrough locations. These revamped spaces are designed not only to boost passenger engagement but to elevate the airport as a retail destination in its own right.
According to Eric Pateman, Vice President, Passenger Experience and Chief Experience Officer for Vancouver International Airport, the expansion added about 7,000 square feet of new space and saw both primary international locations fully renovated in stages to avoid disruptions to sales or passenger satisfaction.
“We pretty much gutted both stores and rebuilt them from the ground up,” said Pateman in an interview. “Everything from the floors to the ceilings is new, and we’ve reimagined how people interact with the space.”
The result is a brighter, more spacious, and thoughtfully laid-out environment that invites discovery, featuring improved traffic flow, better lighting, greenery, and high-end visual merchandising. “We’ve moved away from the traditional ‘cram everything in’ model and embraced a more curated approach,” Pateman added.
Expanding the Product Offering: From Prestige to Accessible
One of the most significant shifts in Vancouver Duty Free’s approach is its broadened merchandise mix. While high-end brands like Hermès, Chloe, and MAC Cosmetics still draw in luxury shoppers, there is now more attention paid to mid-market and locally made items that appeal to a wider demographic.
“We’ve added premium wall space for big brands like Macallan,” Pateman explained, “but also for local brands like Northern Bars. The goal was to create a balance—something for everyone.”
With Chinese outbound tourism still lagging behind pre-pandemic levels, the team focused on adjusting the product offering to attract a broader, more diverse traveller base. This includes new direct flights to destinations like Bangkok, Manila, and Dubai, which are bringing in new customer demographics.
“We’re definitely seeing a younger generation come through, and the product mix has shifted to reflect that,” Pateman noted.
North America’s First Haute Parfumerie
One of the standout features of the newly redesigned space is the introduction of the continent’s first airport Haute Parfumerie. The fragrance zone includes niche and luxury perfume houses such as Byredo, Creed, Penhaligon’s, Diptyque, Montale, and Parfums de Marly.
“It’s a really cool area that brings in brands you just don’t find in your average airport,” said Pateman. “And as a dad of three teenage daughters, I can tell you—fragrance is very much having a moment, even among 12-year-olds.”
The success of this zone illustrates how Vancouver Duty Free is evolving to meet contemporary consumer trends, including the influence of celebrity-backed brands and social media-driven purchasing behaviour.
A Growing Focus on Local Brands
Vancouver Duty Free is also doubling down on celebrating British Columbia’s unique offerings. The newly reimagined store showcases local food products, skincare, and spirits that offer a taste of the region’s rich heritage.
Brands such as REYAL, a Vancouver-based men’s skincare company, and NENA, which produces clay-based face masks using ingredients from northern B.C., are among the new wave of local products gracing the shelves. Aromatherapy brand Provence en Couleur, made in small batches on Granville Island, is another example of how the store promotes regional artisanship.
“We’re seeing strong growth in local food and cosmetics,” said Pateman. “Some of these brands are outperforming expectations—especially REYAL, which I’ve personally become a big fan of.”
Luxury Boutique Revamps Within Duty Free
Several standalone boutiques operating under the duty-free umbrella have also undergone substantial renovations. Hermès, which Pateman confirmed is the only such location in a Canadian airport, has expanded both in footprint and in design.
“They’ve gone up in size, but also in scale and style,” he said. “Their global VPs were just here, and they’re thrilled with how it turned out—and with the sales performance.”
Additional boutiques include Moncler, Bulgari, Cartier, Chloe and other high-end fashion labels, with Moose Knuckles also hosting a pop-up. Pateman noted the breadth of high-end retail offerings now available to international travellers.
Sales Rebound and Changing Traveller Profiles
Despite headwinds related to a slowdown in Chinese tourist arrivals, overall sales performance at Vancouver Duty Free has been strong. Pateman confirmed that sales are up double digits year-over-year, particularly within the newly renovated spaces.
“The stores are performing really well. Transborder traffic remains strong, and when we compare to 2019, we’re still seeing year-over-year growth,” he said. “We’ve had to pivot a bit due to the loss of Chinese travellers, but new direct flights are opening up different markets, and that’s helping a lot.”
While U.S. travel to Canada has remained relatively flat, new air routes are supporting continued growth. Air Canada has recently added routes to Dubai, Manila, and Bangkok, enhancing connectivity and attracting new international shoppers.
A Multi-Year Redevelopment Strategy
Pateman joined Vancouver International Airport roughly two and a half years ago with a mandate to rethink the commercial landscape, from retail to food and beverage. Since then, the transformation has been aggressive.
“We’ve changed or renovated more than 30 outlets in the last two years, and we’ve got another dozen or so coming this year,” he said. “Our biggest changes have taken place in Pier A and the WestJet pier, where we’ve seen penetration rates jump nearly 30%.”
The strategy is working not just for shoppers, but for brands. “Triple O’s is now the highest-grossing location in the franchise. Hula Poke is seeing its highest sales here too,” Pateman noted. “So the airport remains a high-value opportunity for food and retail brands.”
Looking Ahead: Uncertain Forecasts, Big Opportunities
Although global uncertainty has tempered enthusiasm for hard forecasts, Pateman remains optimistic about the future of duty-free retail at YVR. He noted that growth will depend largely on aircraft availability, as supply chain delays at Boeing and Airbus continue to limit fleet expansion. “The biggest limiter right now is just a shortage of airplanes.”
The potential for e-commerce in the airport space remains untapped but intriguing. While current regulations limit duty-free sales to travellers present at the airport, Pateman is closely watching trends from Asia, including live selling, to explore new retail channels.
“There’s some exciting innovation happening in Asia that we could learn from,” he said. “We’re looking at how we might adapt similar concepts in our space.”
Revisiting the Idea of Downtown Duty Free
As for the return of downtown duty-free in Canada, Pateman is skeptical. Vancouver once had duty-free stores on Alberni Street, and DFS even had ambitions to open a major store downtown in the 1990s. But changes in travel behaviour and licensing make such a model unlikely today.
“I don’t see those coming back,” he said, though he noted ongoing discussions with regulators about the potential of arrival duty-free—an approach that has seen success in other countries.
“It would be a really good thing for B.C.,” he added.
Final Thoughts
As air travel continues to rebound, Vancouver International Airport is positioning itself as a global model for modern duty-free retail. With its mix of global luxury, local authenticity, and thoughtful design, Vancouver Duty Free is more than just a stop before your gate—it’s a retail destination in its own right.
“The sky really is the limit,” Pateman concluded. “We’ve got over a million square feet of real estate here. With the right strategy, we can turn YVR into a world-class retail and culinary hub.”
