There Could be a Price Increase in Your Favourite Stores Soon
There’s no denying that the Canadian dollar is on the decline, the value has dropped nearly 16% since the beginning of 2014, and now analysts are saying that Canadians will begin to feel the hit shopping this year. “Consumers are going to feel it soon – in some categories, it’s going to be dramatic,” Austin Machon,a veteran pricing specialist and president of consultancy Manchon & Co., told the Globe and Mail. More specifically, Canadians will start to notice price differences in flights, cars, clothing, vacation packages and food.
A recent survey done by the Retail Council of Canada found that 70% of respondents said they would have to raise retail prices between 1% and 5%. This is especially true for retailers who purchase their inventory from vendors in the U.S or overseas, whose imported goods have become more expensive. Retailers will have to factor higher exchange costs into decisions about in-store pricing. Some of this means upgrading or downgrading product to keep prices relative and consumers happy, but inflation might be unavoidable. The Retail Council of Canada said many retailers expect to see prices increase the second half of 2015. The inflation, paired with low gas prices, could re-spark the trend of crossing the border to shop & amplify online shopping.