Christmas comes early for some retailers

With the drop in value of the U.S. dollar compared to the Canadian dollar of over 50% in the past 3 years, retail franchises along the Canada/U.S. appear to be reaping the benefits. For those of you not away, 3 years ago, the Canadian dollar was worth 62 cents U.S., As I write this, it's worth $1.07 U.S. Yikes!

My wife just got back from a weekend shopping trip to Buffalo NY and reports that the Galleria Mall's parking lot was stuffed with Canadian shoppers. She estimates that about 80% of the cars had Ontario license plates. It took her 40 minutes to find a parking space.

Once she finally got in the mall, she reports that, in the food court, both the Charley's Grilled Subs and the Auntie Anne's Hand Rolled Soft Pretzels franchisees were having a great day. Big line-ups at both of these locations and at many other food court shops as well.

Seems that most of the shops in all the malls she visited had great traffic.

I feel for the Canadian retailers though. Their stuck with stock bought at much higher prices and now find themselves having to compete with their American brethren as well as fellow Canadians. Some Canadian retailers (especially book stores) are getting a lot of heat for the difference in prices.

Feel free to weigh in with your opinion by submitting your comments.

Have a DYNAMIC day!

Fred Berni
November 5, 2007