Sally Ritchie, spokeswoman for the Retail Council of Canada says, “Retailers saw this as a call to action to keep consumers in Canada.
“They’re responding with the big discounts and sales and scratch-and-saves and extended store hours to satisfy that need here in Canada.”
Retail analysts are looking forward to more cross-border shopping this holiday season from Canadians consumers as compared to last year.
According to a recent survey conducted by the Bank of Montreal, almost one in five Canadians (18%) is looking forward to shop in the U.S. this holiday season.
“It’s going to provide a big boost to consumers who want to get a jump on their holiday shopping and still save money,” said Ritchie.
According to Statistics Canada, average weekly earnings dropped by 0.3 per cent in September to $872.75. Considering the 3.2 per cent inflation rate in September, the fall in real wages was more distressing.
However, the relatively elevated value of the Canadian dollar (95.5 cents US) makes cross border shopping more appealing to Canadian consumers.
“Even at 95 cents, the currency is well above its purchasing power parity value – which is in the low 80-cent range – and will still prompt a lot of cross-border trips by Canadians in the next month,” said Douglas Porter, deputy chief economist of BMO Capital Markets.
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