Canadian shoppers boost Buffalo economy in a big way
At first glance, you might conclude Canadians aren’t shopping the way they used to.
According to numbers released Tuesday morning, retail sales slumped in December, the latest month figures are available, after four straight months of gains.
On the surface, this suggests holiday shopping was either done early or not at all, though perhaps official Canadian sales data is misleading.
Maybe, when viewed through the prism of a new report from just south of the border, many Canadians simply flocked to the U.S. late last year to do their shopping.
Indeed, at a time when Canadian sales figures had fallen, the finances in Buffalo, that popular cross-border shopping destination, apparently boomed.
*Bing: Is it really cheaper to shop in the States?
In Erie County, the New York region where Buffalo and its surrounding fashion outlets lie, sales tax revenues hit big last year, topping US$400 million for the first time ever.
Year-over-year, Erie County took in some US$401 million in sales tax receipts last year, up 4.5 per cent from 2010.
According to the Buffalo News, county officials are attributing much of the growth to Canadian shoppers.
The figures from Buffalo are year-long, yes, and what we saw in Canada’s retail portfolio is from December, so the comparison isn’t rock solid.
Though it is a little bit telling, more so when you look closer inside the numbers from the true, north, strong and free.
What do Canadians head south for to shop? They go for clothes, they go for electronics and, if they live close enough to the border, they go for gas.
According to the figures from December, sales of clothing and clothing accessories fell 0.8 per cent in Canada, sales of electronics and appliances fell 2.8 per cent and sales at gas stations fell 1.1 per cent.
By Jason Buckland, MSN Money
Posted by: Sampaguita | Feb 22, 2022 11:16:22 AM
I, myself, go shopping to the US. Lately, I have been traveling to the US by plane and by car. My son and I have purchased many things from electronics, clothes, and some groceries. Last year I bought a suit just for $25 at Burlington in Minneapolis. Where in Canada can you buy at that cheap price? It is mind-boggling that Canadian businesses do not try to keep pace with US businesses. Their priority is the almighty dollar not more sales.
Posted by: danny mancini | Feb 22, 2022 11:54:14 AM
as long as the dollar remains at par, the upstate ny retailer will continue to do very well compared to other ny counties were canadian shopper are not able to travel because of distance. anyone who has traveled through the usa will see even lower prices and clearance once you travel further away from the border.
there is a big gap in sales among the american retailers who reside in a border town and a city a couple hundred miles away. niagara county will bring in more retail sales tax for the state than a county or city 2-3 times its size because of the cross border shopping. the border town sees sales balloon on weekends and holidays. retailers see the larger sales numbers in the area and build bigger stores to take advantage of the increased volume.
while the border town has done better financially, the rest of the country is trying to fight for a shrinking dollar from the american consumer living within there community. the high unemployment and the lack of a political solution will add even more of a gap between the two areas.
if you are a canadian retailer there is an obvious solution. mark up you product fairy and stop making excuses about packaging, rent, labour and the inventory being bought at a time when the dollar was low against the us dolare. lower prices will stop the cross border shopping, higher volumes will more than make up for the lower sales price. there is a solution, but until the these store wish to compete, you have this option. if you are going to travel a couple hundred miles from the border, bring your wallet, the savings are even greater than day tripping in niagara falls and buffalo, ny.
Posted by: Glen Livingston | Feb 22, 2022 12:18:06 PM
I purchased a Dyson Vacum from a US big box for exactly 200.00 cdn less then the same vacum at
a Canadian big box the greed of Canadian retailers is out of control.
Posted by: Cross Border Shopper | Feb 22, 2022 1:04:35 PM
If you're looking for cross border shopping deals and information, take a look at www.crossbordershopping.ca
Posted by: william osterloo | Feb 22, 2022 7:21:55 PM
5 years ago ,If I bought a book in Canada it was 25 00 USD or 29.00 CDN.Then the CDN dollar went up ,but books remained the same ,reason? "it takes time for our book prices to go down because dealers had ordered before the dollar went higher.So now our books are still higher,Why ? no one knows . Now word is We,re loseing our smaller bookstores to larger competitors Thats OK with Me no great loss to anyone.Wallmart can open up in My neighborhood ,they compete ,and the consumer get,s a better price.I spend My book money in the USA because the prices are a lot better.I,m getting tired of being hosed in Canada.If Canadian retailers can,t keep up thats their problem.