Canadians take soaring loonie across border Dollars hit par, making U.S. the place to come for bargains

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HOULTON – Now that the Canadian dollar has hit par with the U.S. greenback, American retailers are bracing for an influx of bargain-hungry Canadians looking for better deals south of the border.

For the past few weeks, as the loonie inched higher in value, Canadians have been heading across the border to take advantage of their strong currency and U.S. prices that are often lower than those in Canada.

For Canadians who can’t or don’t want to make the drive, the online market is becoming a more attractive shopping alternative.

“Shopping is so much better here,” said Sam Theriault of Hartland, New Brunswick, as she headed into the Wal-Mart in Houlton, just across the border from Woodstock, New Brunswick. “The dollar is equal and everything is cheaper over here. I like to support my own country, but being a single mom, you have to find the savings.”

American retailers are rubbing their hands in glee as they watch their parking lots fill with cars loaded with Canadian shoppers.

Cara Buckingham, marketing manager at Bellis Fair in Bellingham, Wash., said sales have increased ever since the Canadian dollar started climbing last spring.

“We’ve seen double-digit increases month to month, compared to the previous year,” Buckingham said.

Cross-border shoppers who are lucky enough to live within an easy drive of the United States can save a bundle on many items, including essentials such as milk and gasoline.

On Thursday, New Brunswick gas stations were charging almost $1.04 for a liter of regular gasoline. Just across the border in Calais, Maine, the price worked out to be about 81 cents a liter.

A 4-liter jug of milk in Woodstock cost $6.70. In Houlton, the equivalent cost only $3.89.

The latest Harry Potter book costs $45 in Canada, but only $34.99 in Houlton.

Canadians who spend less than 48 hours in the United States can bring back goods worth up to $50 duty-free. American liquor and tobacco are subject to duties, unless visitors stay more than 48 hours. After that, up to $400 in goods can be imported duty-free, along with 1.14 liters of wine and liquor, or 24 cans or bottles of beer.

Groceries are duty-free, although there are limits on quantities.

“It’s all about getting bargains,” says Kiska Ruff of Woodstock as she shopped in Houlton. “I’ve got young kids, so bargains, bargains, bargains – anywhere I can get them.”

John Billings, manager of the Wal-Mart in Houlton, said Canadians are shopping for big-ticket items like the latest in plasma and high-definition TVs in addition to their daily groceries.

“I would say as quick as the Canadian dollar goes up, our business goes up from Canadian traffic,” he said.

In Niagara Falls, N.Y., seniors, young professionals and stroller-pushing families were snapping up bargains Thursday at the Fashion Outlets of Niagara Mall. It’s one of the many outlet centers that cater to Canadian shoppers by offering shuttle services and overnight packages.

Most of the Canadian bargain hunters said it’s not just the high-flying loonie – the popular name for Canada’s $1 coin that features a loon – that’s driving them to U.S. stores. It’s also the wide variety of products and brands.

But the loonie’s strength does make it more tempting to keep coming back, said Karen Hultslander, 32, who was hitting the New York malls with a friend.

“It’s my third trip this summer,” said the information technology specialist from Brampton, Ontario. “They’ve got a good selection here that you can’t get in Toronto. So just different clothes and good deals.”

She said she would shop more in the United States if the dollar remains high and might consider buying larger items such as appliances.

“It is cheaper, even when you pay the duty over the border,” said Hultslander. “Same clothes, exact same sweater or something, would be a couple of bucks cheaper here.”

The loonie finally hit par with the U.S. dollar on Thursday for the first time since Nov. 25, 1976.

Despite testimonials from Canadian shoppers and reports of congested border crossings, Canadian retailers say it’s too early to talk about losing business.

Max Logan, spokesman for the British Columbia division of the Retail Council of Canada, said he hasn’t noticed a dramatic difference in cross-border shopping trends.

Compared to the early 1990s, when Canadians routinely crossed the border for a quick shopping trip or to buy gas, delays due to tougher security measures mean it now takes longer to cross the border – and that’s keeping people at home, Logan said.

Logan said Canadian retailers in border communities also are offering more bargains to keep shoppers coming in.

“It’s hard to say whether or not a dollar that’s at parity or even a Canadian dollar that exceeds the U.S. dollar would push people over the border,” he said.

Peter Woolford of the Retail Council of Canada said the only retailers worried at this point are those operating near the border.

“We’re not seeing much impact, other than in locations where you can literally see the border from the store,” Woolford said.

Still, 75 percent of Canadians live within 100 miles of the border, and Woolford said Canadian retailers would have to sharpen their pencils if they don’t want to lose customers.

“Being an independent retailer has never been easy,” he said. “It is very challenging right now. They are being pressed by the big players in Canada, and now they’re facing additional competition from the states.”