Loonie’s strength sends Canadian shoppers south

Canada’s loonie is once again approaching par with the U.S. dollar, and that could send bargain hunters from Canada into Grand Forks motels, restaurants and retail stores this weekend.

The loonie settled Thursday at 97 cents according to The Associated Press. Canadian economists see a trend being established and parity with the U.S. dollar likely by year’s end.

The loonie’s strength is pressuring Canadian stores to lower prices at the start of the Christmas shopping season. It’s a situation similar to two years ago when the loonie hit par, creating a huge difference between American and Canadian prices on books, clothes, electronics and cars.

Grand Forks merchants are coming off Canada’s Thanksgiving holiday last weekend. The number of Canadian shoppers had Super Target’s manager drawing comparisons to 2007.

“It was awesome,” said Roberta Manaigre, store manager. “The last time the loonie was at par, we saw a huge increase in Canadian traffic, a lot of them first-timers that have been coming back as repeats.”

“Canadian consumers have shown time and time again that they are going to vote with their wallets. If they are not happy, they are going to shop elsewhere,” Mark Beazley of the lobby group Retail Council of Canada told The Canadian Press.

The Canadian Manufacturers and Exporters estimates exporters lose about $2 billion (Canadian) in sales, most bound for the U.S., with each 1 percent hike in the loonie’s value.

Grand Forks City Council President Hal Gershman said there may soon be movement on the part of the Canadian government to control the loonie’s strength against the U.S. dollar. Gershman also owns Happy Harry’s Liquors and said sales have been solid.

“Last year at this time was almost an aberration, a huge spike in traffic, record breaking,” Gershman said. “We’re slightly ahead of two years ago.”

Gershman is also a member of the Grand Forks Regional Airport Authority. He said the loonie’s strength will mean good ridership for Allegiant Air’s Grand Forks flights to Phoenix and Las Vegas.

The shopping rush will add to the crush on motel space in Grand Forks, filled up already with UND-Minnesota hockey fans from out of town. Manaigre said she believes a lot of Canadian shoppers planned ahead and have reservations.

“We’re busy, not full, but incredibly busy,” said Julie Rygg, director of the Greater Grand Forks Convention and Visitors Bureau. “We have waiting lists and will contact them if there are openings.”

Passport restrictions imposed by the U.S. in June could keep the number of shoppers down. In May 2007, when the loonie last reached parity, about 2.2 million Canadians were making day trips to the U.S. That number dropped to 1.5 million in June.

Web sites for the Canadian Border Service Agency and U.S. Customs and Border Patrol said there were no delays Thursday afternoon in the travelers’ lanes at U.S. border crossings in Portal and Pembina, N.D.

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