Staff Writer
FORT FAIRFIELD – Since the value of a Canadian and American dollar are nearly equal, more Canadians are shopping in northern Maine, and that’s “Eh” OK with local businesses.
Staff photo/Scott Mitchell Johnson
WITH THE VALUE of a Canadian and American dollar nearly equal, more Canadians are shopping in northern Maine. The loonie is presently worth about 95 cents – a significant change from five years ago when it was worth 62 cents in the United States. At Hillside IGA in Fort Fairfield, grocers regularly post the Canadian discount on its road sign as a way to remind Canadian shoppers of the value. Stephen Watson, store manager of Hillside IGA in Fort Fairfield, said while the “diehard Canadian shoppers” have been coming to the store all along, he has seen an influx in recent months.
“It’s been really noticeable the last couple of months,” said Watson. “Any time the Canadian exchange rate gets below 20 percent, business picks up.
“Before long you’ll probably see it at par … it will be just like it was in the 1970s,” he said. “A couple of years ago, the exchange rate was in the 50s.”
The loonie is presently worth about 95 cents – a significant change from five years ago when it was worth 62 cents in the United States.
Watson said that Canadians are spending just as much on gasoline as Americans are, so they try to save money when they can.
“If they can get more for their dollar over here, they’ll shop in the area,” he said. “Everybody is watching their money.”
Hillside IGA regularly posts the Canadian discount on its road sign as a way to remind shoppers of the value.
“The rates are consistently going down,” Watson said. “They haven’t fluctuated, so it could stretch out for a few months to a few years. You never know.”
Patti Crooks, general manager of the Aroostook Centre Mall, said Canadian traffic is up significantly.
“We know it because we do parking lot surveys three times a day – usually during lunch, late in the afternoon and then in the evening – at all the entrances and anchor store entrances. We have a designated plot and we count all the out-of-state license plates, Canadian plates and Maine plates.
“Some stores are reporting anywhere from a 25 to 50 percent increase,” she said. “Some stores would say it’s even higher than that. It’s a significant increase.”
Crooks said the increase of Canadian shoppers has been rising for the last nine months.
“We’re advertising in Canada which is helping,” she said. “They really like our mall because it’s big, bright and fresh, and we offer products that they can’t get on the Canadian side. The product mix is good for them.
“This mall was built with the fact that the Canadians would be able to shop here because of the exchange rate,” said Crooks. “Though the exchange rate has been pretty tough for 11 years, it’s now starting to come back to our advantage. We do count on their dollar and we try to cater to them. They’re a significant part of our market and we do need to pay attention to that.”
Bryan Seeley, store manager of Marden’s Discount Store, said the store’s exchange rate has been low all along.
“It’s in the ballpark of 6-8 percent and it’s been like that for a good part of the year,” he said. “It helps bring the Canadian shoppers in … especially on their holidays.
“With our store, we have different inventory come in all the time, so customers come in regularly to see what we have. We have shoppers from the Perth-Andover area and even Fredericton. We advertise in the Canadian market, and I think our Houlton store has seen a bigger increase because of the Canadian market on the other side of the border, but we’re definitely seeing additional traffic, as well.”
Merchants are hopeful the exchange rate will hold, if not drop farther, and Canadians will continue to get their money’s worth in the region.
