Appreciating Holiday Shopping Duty-Free

Poor Larry Horwitz. Not even Pammie's memories can help him now in his situation. Perhaps Gord Henderson could write another column about how he met Pamela Anderson because no one seems to care about his comments about downtown.

He must be wondering why he took the job as the head of the Downtown Business Association. I saw him on A-Channel News on Friday complaining about how the Tunnel coupon giveaway was hurting his members' businesses.

If it was not enough that a $20 Cash coupon to buy goods in the US was given away at the City owned Windsor/Detroit Tunnel on Black Friday, the downtown business retailers now have to compete when the Tunnel Duty-free shop has a promotion coming up. According to the news I saw, the US mall owner was quite happy with the promotion since at least 500 people redeemed their coupons, an unbelievable 25% rate of redemption.

Perhaps the Tunnel Duty-free shop owner might be able to make a few dollars too. I saw the ads in the Detroit News and the Detroit Free Press as shown above. I wonder how many Canadians will cross the border to get duty-free goods at 20% off or how many Americans will choose to buy there instead of at a Windsor retailer. If Canadians are going to cross the border to buy at the Duty-free, unless they turn back immediately, I expect that they will continue on to a shopping mall and spend some more money.

That should make the Mayor furious as well. With friends like the Tunnel and the Tunnel Duty-free shop, who needs enemies.

I guess the argument to be made is that the advertisement was placed in US newspapers to attract Americans to come to Windsor and to buy the Duty-free goods when they return. So that should help us out. Not a bad point of view except:

• "Unlike many duty-free shops frequented by tourists who may not return for months if ever, the Windsor Tunnel Duty Free Shop's customers are mostly American who regularly cross the border.
  
  They're so well known, store staff know their preferences and habits and inform them about promotions on favourite products."

What then is the need to reduce prices by 20%? I don't get it.

Is the program designed to be a one day only "thank you" to regular American customers? Perhaps, but I don't see the point of it if they are going to buy there anyway. Why give away money for nothing?

Is the program designed to be a sale for day-tripping Americans to help them generate revenues at the Duty-free shop? Perhaps but why bother since how much can be made in a few short hours? It's on a Thursday after all during times when most are at work.

The only other alternative that I can think of is that the program is designed to attract Canadians and to let them know that if they cross the border to shop in the US, they should stop in first at the Duty-free shop.

How can that be you say. As I said above, chances are that on a Thursday afternoon and evening few Canadians will go over. And the argument will be that since the ads are placed in American newspapers, few Canadians will see it (except for the Canadians who work in the US and read US newspapers). I don't understand that either.

To be direct, I'm not sure I see the point of the sale all except maybe to help out the Tunnel and its owner, the City. Perhaps the real purpose is to build up or to maintain Tunnel traffic volume and to keep commuters away from the Ambassador Bridge.

But here's the funny part about it. 20% off is not an insignificant sum of money. I would expect that there would have to be a fairly high volume of sales to make up for that reduction. It is not just 20% off on loss leaders but on everything other than cigarettes and tobacco products.

Do not fear however for the financial position of the TaqTaq family who own the Duty-free shop. The City of Windsor taxpayers may be ready, willing and able to help them.

Back in the Minutes of the Windsor Tunnel Commission in March, 2007, there was a verbal update by the City Treasurer about something dealing with the Duty-free shop. What it was about, the Minutes did not say since the matter was dealt with in camera. Interestingly, the Mayor declared a pecuniary interest on the subject but it did not state why in the Minutes.

In August, 2007, there was another in camera session authorizing Administration to negotiate a lease abatement contract. I found it strange that it did not say with whom this agreement would be negotiated but I also note that the Mayor declared a conflict of interest and left the meeting. My assumption is that it had something to do with the Duty-free shop. Once again, the Minutes did not disclose what the basis of the conflict was.

Just in passing, I see that there was a declaration about the interest of the Mayor but I didn't see anything about disclosing the general nature thereof. I sure would like to know what the reason was.

In any event, and I can't say for sure since the Minutes are not clear, it could be that the City taxpayers have given a rent reduction to the Duty-free shop and that rent reduction can help offset all or part of the 20% reduction in prices for that one day sale.

I think the ad should be changed if that's the case. I think City taxpayers should get top billing.

However the action at the Tunnel may have consequences that reach far beyond the Tunnel entranceway. What Mr. Horwitz should immediately do is run right over to City Hall with his Board and demand a tax abatement for all of his members.

Seriously, I mean it. If the Minutes mean that the City through the Windsor Tunnel Commission can give the Duty-free shop a break presumably because of the reduction in tourists who are coming across the border, then the downtown businesses should get a break too.

What about Erie Street. Will those businesses come next?

Fair's fair isn't it? Now Larry, about Pamela...