Katherine Sullivan in conversation with DFNI’s Chris Madden.

The ongoing political dispute between the US and Canada is posing challenges for travel retailers, particularly those north of the border. For Aer Rianta International (ARI), whose Canadian business is the focus of its North American operations, falling traveller numbers and increased product restrictions have made the past 12 months increasingly difficult. Nevertheless, the retailer  remains optimistic about the market; with a landmark renovation in Edmonton completed at the start of 2025 and work at Montréal–Trudeau International Airport on the horizon, there is no talk of a downturn.

Katherine Sullivan, Head of Marketing for ARI North America (ARINA), tells DFNI how the company has responded to the region’s geopolitical climate.

What were the standout highlights for you in the Americas over the past year?

One of the key highlights of the past year was the opening of newly renovated stores in Edmonton, which marked an important milestone in enhancing the passenger retail experience in that location. These refurbishments allowed us to modernise the retail environment and strengthen our offer to customers. Another notable development was the opening of our first standalone Spectrum Sunglasses store in Quebec City. This launch represents an exciting step forward in diversifying our retail portfolio and strengthening our presence in the sunglasses category.

What were the most significant challenges facing the business in the region? 

One of the most significant challenges in 2025 was the evolving trade tensions between the United States and Canada. This had a direct impact on travel patterns, particularly as we observed a noticeable decline in Canadian passengers travelling to the United States, which is traditionally one of the most important destinations for our customers. In addition, government-led initiatives in Canada encouraging a boycott of certain American liquor products created operational challenges for duty-free retailers. In some locations, we had to adjust assortments and implement these measures within our airport stores. To mitigate these pressures, we leaned further into our strong portfolio of Canadian products, which already represent a significant portion of our sales. We expanded this focus by capitalising on the growing “Buy Canadian” sentiment and reinforcing the visibility of locally-produced goods. As part of this strategy, we introduced three new Canadian beauty brands and further strengthened our assortment of Canadian liquor, food and souvenir products. Another factor impacting the business has been the decline in travel to Cuba. Historically, Cuba has been an important winter destination for Canadian travellers. However, passenger numbers to the island have dropped significantly over the past year, and in 2026 this destination has effectively disappeared from our network due to the ongoing political and economic situation there.

How much is the current political and economic climate in the Americas affecting travel retail?

The broader political and economic environment is clearly influencing travel patterns and consumer behaviour across the region. At the same time, inflation and cost-of-living pressures are affecting  purchasing behaviour, making travellers more price conscious. This places greater importance on value messaging, competitive pricing and carefully curated assortments that deliver strong perceived value. In this environment, close collaboration with brand partners and buying teams is essential to maintain healthy margins while ensuring the offer remains attractive to travellers.

We have seen increased hybridisation in the market around the world in recent years. How is the Americas responding in terms of retail formats, in your experience?

The travel retail landscape across the Americas continues to evolve, with airports and retail partners increasingly focused on creating more engaging and experience-driven environments for travellers. While traditional retail remains important, there is growing momentum around concepts that combine strong product storytelling with more experiential elements. Airport operators are generally supportive of these developments, recognising that well-designed retail environments play a key role in enhancing the overall passenger journey while also driving commercial performance for the airport ecosystem.

Which channels currently offer the strongest growth opportunities for your business in the Americas and why?

Airports will continue to be our primary focus in the region. At present we operate two duty-paid airport retail locations in Canada: a Chanel boutique at Vancouver International Airport and our Spectrum Sunglasses store in Quebec City. The duty-paid segment represents an interesting and strategic opportunity for us, as it allows us to engage with a broader passenger base and helps mitigate some of the volatility associated with international travel flows. As passenger dynamics continue to evolve, this channel offers meaningful potential for growth.

What are the key drivers of passenger spending that you have seen in the Americas as we move into 2026?

Cost of living pressures and inflation are likely to continue influencing traveller’s purchasing power. In Canada in particular, we have seen passengers become increasingly value driven and price sensitive, which makes clear value messaging a key component of our retail strategy. At the same time, locally-produced products remain an important focus. Expanding our range of Canadian brands helps mitigate the impact of tariffs and currency fluctuations while also resonating strongly with travellers looking for authentic local products. Travel-exclusive and value fragrance lines also represent a significant portion of our Canadian business and continue to perform well, offering travellers strong perceived value while maintaining the appeal of premium brands.

What initiatives, investments or launches are planned for the Americas in 2026?

Looking ahead to 2026, one of the key projects on our agenda is the renovation of our store at Montréal–Trudeau International Airport. This investment will allow us to further enhance the retail environment and strengthen the offer for passengers travelling through one of Canada’s most important international gateways.