Small border shop, big social impact: Sault Ste. Marie Duty Free’s digital success story
A look inside Sault Ste. Marie Duty Free at its fragrance selection; the store was recently awarded three FDFA Gold Standard Awards at the 2024 FDFA Convention in Toronto, Ontario
When Ralph Caria helped launch Sault Ste. Marie Duty Free in 1987, the store’s marketing consisted of a catchy radio jingle and handwritten price tags. Now, that same jingle plays while the duty free store’s TikTok videos rack up millions of views, marking one of the most dramatic transformations in its 37-year history.
Recently awarded three FDFA Gold Standard Awards at the 2024 FDFA Convention in Toronto, Ontario, Sault Ste. Marie Duty Free has evolved its retail approach by mastering social media engagement while strengthening its role as a community cornerstone. The store’s innovative marketing strategies, from viral TikTok videos to traditional radio spots, complement rather than replace its deep local connections.
Building on legacy
The store opened in 1987 at the International Bridge Plaza, with Ralph Caria as one of its founding partners. After Jeff Law's retirement in 2019, Caria took sole ownership, maintaining the same enthusiasm he brought to the business 37 years ago. Today, the store draws a mix of American (60%) and Canadian (40%) customers from as far as Sudbury and Timmins in Ontario, and Michigan, Ohio, Indiana and Wisconsin in the US. “We work diligently to ensure we have products that satisfy customers from both sides of the border,” says Caria.
This cross-border appeal extends beyond the immediate vicinity, drawing customers from cities in Northern Ontario, as well as US states such as Florida. The shop’s reputation, particularly for its exceptional Scotch and bourbon selection, has made it a destination for spirits enthusiasts.
Sault Ste. Marie Duty Free’s blend of local engagement and social media savvy is transforming the border shopping experience while staying true to its small-town roots
Digital transformation
In a striking example of modern retail adaptation, the store has embraced social media with remarkable success. “While we don’t have traditional e-commerce, our online presence has become a crucial part of our strategy,” Caria explains. The store’s creative approach to social media recently paid off when one of its TikTok videos, featuring a six-liter bottle of Grey Goose Vodka, went viral with over three million views.
The social media strategy particularly resonates with younger customers. “We’re seeing more Millennials and Gen Z visitors,” notes Caria. “These shoppers are more discerning and knowledge-driven, which aligns well with our approach to product education and transparency.”
This digital presence extends beyond mere promotion. The store effectively uses platforms like TikTok and Facebook to showcase special offers, including the popular five-case beer deals and 20% discounts on jewelry and fragrances. These promotions, when shared through engaging social content, have proven particularly effective at attracting new customers.
Community at the core
What sets Sault Ste. Marie Duty Free apart is its deep commitment to community involvement. The store participates in numerous local events, from sponsoring youth hockey teams to taking part in the annual Bridge Walk and Rotary Parade. “It starts by making sure the store is inviting,” Caria says. “We want customers to feel comfortable from the moment they step in.”
This community focus extends to the store’s employment practices. It provides valuable work experience to local youth and university students, many of whom continue working there throughout their educational careers. The store’s involvement in the recent Rotary Parade exemplifies this community spirit, with staff designing and decorating their own float in partnership with GFL, who donated their truck and time.
The store also demonstrates cultural awareness through its product selection. Their offering of Native-brand merchandise and orange shirts supports indigenous communities, reflecting the store’s understanding of its location on indigenous territory and its commitment to cultural representation. “These products add cultural significance to our store while offering travelers something unique and rooted in local heritage,” Caria explains.
Post-pandemic resilience
Rising inflation and escalating operational costs have complicated Sault Ste. Marie Duty Free's post-pandemic trajectory. “Even though sales might look like they're back, in reality, they're not because sales haven't made up for inflation,” Caria explains. “The cost to generate those sales has increased significantly, with everything from freight to utilities up 20-25%.”
Despite these challenges, the store continues to innovate. Recent improvements include new lighting installations and enhanced visual merchandising. The product mix remains strong, with spirits and beer leading sales, followed by perfumes and fragrances, confectionery and food, and tobacco products.
The store’s strategy for maintaining competitive pricing while dealing with increased costs has required careful balance. “It’s a challenge to try and return to pre-COVID levels when dealing with the duty free model and price-conscious consumers,” he says. “Costs have increased more than we’re able to pass on to the consumer.”
Shaping border retail’s future
As the duty free industry evolves, Sault Ste. Marie Duty Free is advocating for important regulatory changes. A key initiative is the push for duty free stores to be recognized as export businesses, which would help address current regulatory inconsistencies. “The problem is you have all these federal departments that interpret duty free differently,” Caria explains. “Some departments don’t recognize duty free business as export, which subjects us to domestic rules when we shouldn’t be.”
Formula for success
The store’s success formula combines traditional retail wisdom with modern marketing strategies. The iconic radio jingle still plays within a 50-kilometer radius, while its social media presence continues to grow. This blend of old and new, coupled with its strong community ties and customer-first approach, positions Sault Ste. Marie Duty Free well for the future of border retail.
Looking toward 2025, Caria maintains a focus on sustainable growth while hoping for increased border traffic. “We’d like to see Destination Canada spend more of their tourism dollars closer to home in the US market,” he says, emphasizing the importance of cross-border tourism for the industry’s growth.
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