Canada's depreciating dollar has thus far done little to stop the number of Lower Mainland residents crossing the border to buy cheap milk and gas at nearby Washington state cities like Bellingham.
An Insights West survey released February 17 found that fewer Metro Vancouver residents say they plan to drive south of the border compared with last year. But a majority – 61% – still said they had travelled to the United States at least once in the past 12 months, and 69% said they are making the trip at about the same rate compared with the previous year. That follows a 143% increase in same-day trips between 2009 and 2012.
The survey also showed that cross-border shopping has become a comfortable habit and a cultural experience for many B.C. residents.
"British Columbians made twice as many same-day trips per thousand people than Ontarians and 50 times more than Albertans," Steve Mossop, president of Insights West, said at a panel hosted by Retail Advertising and Marketing Canada. "Which is really why you haven't heard a lot of attention paid by Ottawa on this topic. It's really a Vancouver phenomenon."
Lobbying the federal government for action on cross-border shopping has been a focus for the Surrey Board of Trade (SBoT), along with the Canadian Chamber of Commerce, said SBoT CEO Anita Huberman.
In its 2014-15 budget, the federal government committed to address the price gap issue – the top reason Canadians shop in the U.S. The government said it's studying the effect of its one-year-old elimination of tariffs on items like sports equipment and baby clothes.
It also plans to introduce legislation targeting "country pricing," where companies charge higher prices in Canada that are not fully explained by higher Canadian operating costs.
Other initiatives, like encouraging retailers to offer Black Friday sales on this side of the border, have paid off in recent years, Huberman said.
London Drugs general manager Dave Thorpe said his company had its best Black Friday ever in 2013, which he attributed in part to the company sending a message to customers giving them 10 reasons to shop at home.
While many B.C. businesses view cross-border shopping as the hand that picks their pocket, economic opportunities from foreign trade flow both ways, said James McCafferty, assistant director at Western Washington University's Center for Economic and Business Research.
For instance, B.C.'s tourism sector continues to rely on visits from Americans.
McCafferty added that Canadian cross-border shoppers benefit from cheaper prices that Americans pay for in other ways, such as farm subsidies that help lower food prices.
"If we're trying to change consumer behaviours, what are the trade-offs? Do you want more malls and more single-car traffic?" he asked.
"Do you want lower taxes? The west coast of the United States has gone through a tax revolt. … It's decimated higher education, it's decimated services and a whole bunch of public infrastructure." •
