Email to a friend Printer friendly Font: * * * * That, of course, depends on consumers — many of whom have spent the past few months eyeing the strengthening Canadian dollar and wondering whether our newly robust currency will translate into lower prices at the cash register. If it doesn’t, consumer anger at the Canada-U.S. price differential could send Canadians to do their Christmas shopping south of the border. They’d certainly be more than welcome.
In the U.S., where the economy is not as strong right now as it is in Canada, the National Retail Federation (NRF) is already predicting a modest Christmas selling season, forecasting a four-per-cent growth in sales, the smallest increase since 2002. “Retailers are in for a somewhat challenging holiday season as consumers are faced with numerous economic obstacles,” federation economist Rosalind Wells said in a news release.
“With the weak housing market and current credit crunch, consumers will be forced to be more prudent in their holiday spending.” While the luxury market is holding its own, it’s expected that low- and middle-income shoppers in the U.S. will be the ones watching their spending. “This could spell trouble for the discounters and some department stores whose shoppers may be looking to trade down,” the NRF says. In fact, things in the U.S.
look so challenging that the New York Times reported this week that a number of big retail chains in the U.S. have already started their Christmas sales and their Christmas advertising - “an unusual intrusion into Halloween shopping territory.” With an outlook like that, it wouldn’t be surprising to find U.S. merchants near the border eyeing Canadian shoppers. Canadian retailers, at this point at least, are not overly concerned about the Christmas season.