Shopping In The USA

I remember the parking lot at Pace on 14 Mile Road in Detroit. Do you?

I am sure that I can guess why I have not seen a similar story in the Windsor Star.

It could destroy our fragile retail economy what with the slow-down in US tourists coming here as well.

Canadians flex monetary muscle
Jump in value prompts more U.S. shopping

By MOLLY MONTAG
Times Herald

FORT GRATIOT — Thousands of Canadians, riding the tide of a strong Canadian dollar, motor across the Blue Water Bridge each week to spend their money at Blue Water Area shops and stores.

Some, like Jen Healy of Forest, Ontario, can’t believe their good luck. Finally, after decades in the shadow of the American dollar, conditions now favor the Canadian consumer.

The exchange rate is about 94 cents Canadian for every American dollar.

“Now, with the exchange rate so good, you tend to get bargains,” said Healy, 23.

Local businesses, especially those in Fort Gratiot’s retail sector, said they welcome this invasion with open arms. Officials at some stores, including Hobby Lobby in Fort Gratiot, said Canadian consumers make up nearly half their business.

While local business officials do not have statistics illustrating the Canadian impact on Blue Water Area businesses, they said the effect of the Canadian dollar has increased as exchange rates have crept toward equalization.

Michael Lawley, general manager of Tourism Sarnia Lambton, said Canadians spent $10.2 billion in the United States in 2006. Michigan was one of the major recipients, he said, ranking as the fourth most-visited state.

“There is now a propensity for more Canadians to travel into the U.S. and into Michigan than any time in history, he said.

Vickie Ledsworth, president of the Greater Port Huron Area Chamber of Commerce, said the Fort Gratiot retail sector in particular benefits from Canadian traffic. Canadian customers call the chamber, she said, asking for specific items they can’t get in their home country.

While currency rates are ripe for St. Clair County businesses to cash in on Canadian shoppers, local officials fear passport regulations and the Blue Water Bridge expansion project could dampen the growth.

“We need to keep that flow of commerce coming over the bridge going as conveniently as we can,” Ledsworth said.

Better variety
Shannon McHugh and her son, Desmond, of Ingersoll, Ontario, spent Sunday shopping in Fort Gratiot. She said the exchange rate, which once had been as low as 70 cents Canadian to every $1 U.S., has them visiting the Port Huron area monthly.

“When the rates started to change we definitely increased the frequency of our visits,” she said.

Although Ingersoll is roughly the same distance from metropolitan Toronto as it is from Michigan, McHugh’s children, including 11-year-old Desmond, like driving to the United States.

“It’s fun,” McHugh said. “It’s a different country and they look at it as an adventure.”

Desmond likes to check out the electronics aisles of Meijer and Target stores. His other favorite stores include American Eagle.

The family will continue shopping at Fort Gratiot businesses, McHugh said, especially if the exchange rate stays in their favor.
Curtis Sprinkle, store manager at Hobby Lobby in Fort Gratiot, says the 24th Avenue store is the only in its chain that advertises in two countries. He estimates Canadians, always a strong customer base, have been frequenting his business more and probably account for 55% to 60% of his customers.

“I think overall in the entire area you’ll see the weekend shopper coming over here more (because of the exchange rate),” he said. “They’ll frequent more often and they’ll probably come over more during the week so they don’t have to deal with the lines at the bridge.”

A strong Canadian dollar going head-to-head with a weakening American dollar means Canadian businesses have a harder time convincing their countrymen to keep their money inside Canada.

Canadian officials said American visits to Canada have been dropping in recent years. In 2006, Lawley said 1.2 million Americans visited Canada. That was 10% lower than 2005, which had already dropped another 10% from 2004.

“It represents a huge hit for us,” he said. “It’s a big customer base.”


Bridge has impact
Port Huron business officials are excited about the influx of Canadian money, but worry its effects might be tempered by the Blue Water Bridge plaza expansion and more restrictive passport rules.

Lawley, Ledsworth and other area officials have been working together to try to encourage commerce across the Blue Water Bridge. They worry regulations that will require all Canadian and American travelers to have a passport to travel by land or sea between the two countries could have a negative impact on the region’s economy.

U.S. Department of State officials announced this year the new regulations could go into effect as early as January.
“It restricts Canadians and Americans from freely traveling across the border, purely because they don’t have passports,” Lawley said.

Passports aren’t the only things businesses worry about. The Blue Water Bridge plaza expansion worries Sprinkle, who estimates the vast majority of his Canadian customers already have passports.

“What I am worried about is the bridge improvement and expansion that’s going to go on in a few years,” he said. “I think all of Port Huron would be worried about that.”

Bridge traffic is the determining factor for Healy, who will turn around and go home if she sees too much traffic on the Blue Water Bridge. She said the impending plaza expansion project, which could take years to complete, would be another reason to stay home — at least for a while.

“If they’re doing construction I’ll probably go over less,” she said. “But once it’s done I’ll probably go over more if the lines move faster.”