Just six months ago, Peace Arch Duty Free Shop operator Peter Raju was about ready to throw in the towel, frustrated by operating challenges – including tariffs – in recent years that had rendered the longstanding business “not profitable.”
“In August/September, we seriously thought about turning the keys back to the First Nations,” Raju said Jan. 27.
“But then we said… we hope things will get better. We believe travel will restart. So, we’re building with that hope.”
Raju was commenting after announcing an ambitious redevelopment project underway at the store, which is the last stop for travellers heading south through the Peace Arch border crossing.
The $6.5-million undertaking will transform the space inside and out, Raju said – from new flooring and fixtures for an “expanded and elevated product offering,” to landscaped gardens, curated sculptures and a children’s playground.
The majority of it will unfold with no disruption to shoppers; however, the final phase will require about a one-month closure. The exact dates for that have not yet been determined, but Raju is aiming to have all the work wrapped up ahead of the 2026 FIFA World Cup games in Vancouver. The first of those seven matches is scheduled for June 13.
A news release about the renovations notes the project will set “a new global standard for land-border retail.”
“It’s an unbelievable store that’s going to be opened,” said Raju, describing product additions that will include high-end watches, electronics, perfumes and cosmetics – many of which are subject to tariffs when purchased stateside.
“We’re taking advantage of the high tariffs in the U.S. … so we’ll be able to aggressively compete with the U.S.”
Raju said he is also continuing to press for the federal government to designate Canadian duty-free shops as an export industry; a measure that would eliminate federal taxes and mark-ups on liquor that have discouraged Canadians from shopping duty-free ahead of leaving the country.
It would bring Canada’s sector in line with the global duty-free industry, he said.
“It’s a very easy ask,” Raju said. “We are not asking for money, we just say get rid of two levels of taxes, or make ‘duty free’ duty free – period.”
Describing the renovations as a “huge investment,” and favourable currency conditions currently as “the only advantage we have,” Raju said his only option is to hold on to optimism.
The shop has already weathered myriad global disruptions, including 9/11, the SARS outbreak and the COVID-19 pandemic (which forced a two-year closure).
“I strongly believe that things will be back to normal, and I think all of us have to believe that,” he said.
“All you can do is hope and take a gamble.”