Cross-Border Shopping Craze Falls Short of Its Zenith

Winnipeg Free Press (October 18, 2007)

Author: Anonymous
Permanent Link: http://ca.vlex.com/vid/border-shopping-craze-falls-zenith-64238570
Id. vLex: VLEX-64238570

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Summary:

Will the cross-border shopping surge surpass the 1991 peak? Maybe, and then, maybe not. In the post 9/11 world, crossing the border is not the relatively footloose and fancy-free experience it once was. Border security has resulted in long lines that could make many Canadians think twice about crossing the border as an investment of their precious vacation time. Gasoline prices are also a lot higher than they were in 1991, which can serve as a disincentive to drive. More important, however, is the structural shift in Canadian retail during the course of the 1990s that has brought Wal-Mart and many big-box American stores into most Canadian urban centres. The fact is that shopping in the U.S. is not as unique an experience as it once was and most purchases can be made here. However, the draw of a trip to the U.S. as a getaway experience remains and there can be substantial savings on some big-ticket items such as automobiles. Price is still a factor but you can always shop in the U.S. on the Internet and save yourself a trip -- an option not available in 1991. A changing world means that despite the high Canadian dollar, we may not witness Canadians behaving as shopping refugees any time soon. Ultimately, much depends on just how frustrated Canadians get if they start to feel that exchange-rate savings are not being passed down to them at the retail level in Canada.

Extract:

Cross-Border Shopping Craze Falls Short of Its Zenith

Livio Di Matteo

THE supercharged Canadian dollar is sparking fears that Canadians are poised to re-enact the shopping frenzy of the late 1980s when millions of them poured across the border into American malls. Given the proximity of the United States, Ca...



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