Canadian Retailers May Raise Prices to Combat Weak Loonie
This isn’t great news for Canadian consumers as retailers are expected to hike up prices as they begin to feel the pain of a weak performing Canadian dollar.
According to the Globe and Mail, Canadian retailers have been resisting the need to hike prices, but as the Canadian dollar continues to slide, retailers have decided they can’t take it any longer.
Many Canadian retailers including everyone from Canadian Tire to Dollorama purchase a majority of their inventory in U.S. dollars, making purchasing for stores increasingly expensive. The resulting lower loonie has forced retailers to chop staff, offset other costs and now raise prices.
How much will prices rise? No one seems to know but the Globe and Mail interviewed Larry Rosen CEO of Harry Rosen and he says consumers can expect a $3 to $4 increase per product on his product. That number is for expensive merchandise so hopefully lower priced goods will not be affected as much.