Importations Guay Ltée is not only one of the best land border duty free stores in Canada, but is recognized as one of the best in the world.
For the second time in three years, IGL Duty Free has been nominated by the Frontier Awards for Border, Downtown, or Port Retailer of the Year. The family-owned company won the honor in 2022.
IGL operates three stores in Quebec. Its main store is located in St. Bernardde-Lacolle, Quebec, between Montreal and New York. It also runs Boutique Hors Taxes l’Est in Stanstead, Quebec, which is located between Montreal and Boston, and Boutique Hors Taxes de Stanhope in Dixville, Quebec, between Sherbrooke and Boston.
Travel Markets Insider spoke with IGL Vice President Justin Guay, the third generation to work at IGL, about what his store is getting right on the Canada/ United States border, and how the business is coming back since the COVID-19 pandemic ended.
“We are not at 2019 levels for most departments, and we’re following the trend of pretty much everywhere globally. It’s obvious that the Chinese consumer is spending within their own country. It’s obvious that skincare is down globally, and it’s obvious that fragrance is up globally. We are following very similar trends that I think everyone else is seeing. If we’re going to pick a superstar in our store, it’s been fragrance,” Guay tells TMI.
A different customer, different inventory
Guay says that IGL learned a number of things from the pandemic, which resulted in the operator implementing changes going forward.
“We had to adjust the way that we dealt with our inventory, because we had to manage it in a very specific way while the pandemic was going on,” he says.
The customer was also different post-pandemic, which changed the assortment of products IGL is carrying.
“We had a lot of customers who were traveling who had not traveled for a long time. We had a lot of people who were stopping at duty free for the first time, who were crossing the border for the first time. People wanted to get out of the house. They wanted to spend money. So the demographics were different and the sales were erratic,” says Guay. “It’s stabilized now and back to normal. But we had a question, during the pandemic, of how do we manage this inventory? And then once we came out of it, who wants to buy what? It was a learning process.”
The customer demographic has also changed for IGL. The operator is still seeing Koreans but the Chinese business is almost zero.
“The Korean customers are here, but they are not buying what they used to buy. But the Indian consumer is coming. It’s their first time traveling. They are traveling on busses, and they’re spending money. They’re buying luxury to show their friends back home, and it’s a very different customer. They’re buying items that we don’t normally sell to the other Asian groups. We’re starting to get them a lot more.” Being prepared for the right customer is one thing that sets IGL apart, Guay tells TMI.
“I think we look like an airport shop. I attend the Singapore and Cannes shows. I go to the TR Forum in Dubai. I like to keep up to date with what’s going on. I think that we have the latest in design for most of the displays,” he says. “We’re very aggressive on our pricing, and we have to be, because we’re competing directly with the New York State and New Hampshire liquor store.”
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IGL and AI
IGL is constantly looking at the latest technology that can help customer service in its stores, and has been experimenting with AI, Guay tells TMI.
“We’re trying to integrate AI into our operations. It is still trial and error, but we’ve started with a custom ChatGPT that we introduced for our inventory. The objective, which we haven’t gotten to yet, would be to have a podium at the front door that greets everybody. It will be a very realistic avatar that sees people come in and read them English and French, and then the customer can speak to it.
“They can say ‘I’m going to Vermont for two days with my friends, and we’re having a barbecue, and we’re cooking ribs and burgers and corn. Can you make a recommendation on a moderately placed white wine that would go with these?’ And the GPT would go into our inventory and come out with three options.”
“Or a German customer comes in and asks for something they wouldn’t necessarily ask us, because we don’t speak German, but the GPT will remember exactly what that customer wanted. We’re working on it. It’s not perfect, but it’s certainly an excellent tool. There’s a way to tailor it to the retail experience that’s a very powerful experience for the customer.”
Sustainability
IGL has also embarked on a sustainability journey in food and beverage at its Stanstead location, through a partnership with Montreal-based Van Houtte coffee.
“Van Houtte is a brand with local roots dating back to 1919. We’ve also expanded our offerings to include carefully selected items from Maison Gorchon, a sustainable, locally-operated business located just under 5 kilometers from our store,” says Guay. “Maison Gorchon was the natural choice for us due to their outstanding food quality and deep commitment to sustainability and community. They utilize compostable packaging sourced from a local Quebec supplier and are dedicated to hiring local talent. Their collaboration with a nearby bakery ensures a daily supply of fresh, high-quality bread and pastries, while their practice of in-house meat roasting reduces the need for long-distance transportation.
“Our customers have responded enthusiastically to these changes, reflecting a noticeable increase in satisfaction. We take immense pride in offering a food and beverage experience that truly stands out from the usual processed, big-box fare.”
