Business

In Black Friday border mall battles, Canada tries to outshine U.S. deals

This year, some Canadian border malls are plotting to steal not only the U.S. Black Friday sales tradition, but also, American shoppers. The hope is the weak dollar will help convince both Canadians and Americans that the best deals lie north of the border.

Shopping centres duke it out for Black Friday customers on both sides of the border

With the lure of the low Canadian dollar, is this the year American shoppers flock north in search of savings? (Sara Calnek/CBC)

This year, some Canadian border malls are plotting to steal not only the U.S. Black Friday sales tradition, but also American shoppers.

Shopping centres in Canada are preparing their own big bonanza sales events for tomorrow's Black Friday. And they now have an added lure for shoppers: the low Canadian loonie. The hope is the weak dollar will help convince both Canadians and Americans that the best deals lie north of the border.

But not everyone believes Canada can trump its neighbour when it comes to blockbuster deals.

"All suits were 50 per cent off, and if you bought two you got one free," says Iva Grbesic about a past Black Friday sale her husband indulged in at a mall just outside Detroit. The Toronto fashion blogger believes deals like that just don't happen in Canada.

Will the Americans come?

Tomorrow's Black Friday is a frenzied American shopping event full of door crashers and deep discounts. It always follows the U.S. Thanksgiving holiday with some stores opening at midnight or even earlier.

Frustrated by the crush of Canadians crossing the border in search of bargains, retailers here have been trying to keep shoppers at home by offering their own show stopping sales.

Now, the shopping centre Outlet Collection in Niagara-on-the-Lake, Ont., feels the time is ripe to woo American shoppers by launching an online advertising campaign.

Outlet Collection in Niagara-on-the-Lake, Ont., is running this online ad campaign to woo U.S. shoppers. The mall informs Americans they will get the added bonus of a great exchange rate.
"It's basically three times the savings for them if they come over the border," says Carly Rupcic, marketing manager of the outlet mall, which is home to more than 100 brand-name stores.

As its ad campaign explains, during the mall's "Black Friday Frenzy," U.S. shoppers will get cheaper outlet prices plus added Black Friday discounts, and the bonus of a great exchange rate.

"Their dollar is so strong compared to our loonie, so it's pretty much a savings of 25 per cent on top of all the other sales," says Rupcic.

The online ads are running on Facebook and via direct marketing, targeting potential customers in upstate New York.

On its site, Outlet Collection is also advertising Black Friday sales, with many stores offering up to 50 per cent off all merchandise.

Rupcic says there are already signs Americans will come, because they've been flocking to the mall since the summer. She also believes the deals and low loonie will help keep Canadian shoppers on this side of the border.

Canada One Brand Name Outlets in Niagara Falls, Ont., is also optimistic both Canadians and Americans will look north for Black Friday savings. "[With] many of our stores offering the same sales as in the U.S., but in Canadian dollars, coming to Canada is now worth the trip," says property manager Tatiana Shovkun.

The latest Statistics Canada numbers do look promising for retailers in this country. In September, same-day car trips by Canadians returning from the U.S. declined by a whopping 27 per cent compared with the same time last year. Meanwhile, Americans entering Canada for the day rose by 15 per cent.

However, Statistics Canada also found that during past Canadian Black Friday events, people haven't exactly shopped till they've dropped. The agency reported that retail sales in November edged up only slightly from 2006 to 2014, from 8.4 per cent to 8.5 per cent of total annual sales.

Border malls face off

Across the border in Niagara Falls, N.Y.,  the Fashion Outlets mall believes it still hosts the best Black Friday bash in the region. The U.S. shopping centre, which has more than 200 brand-name stores, is preparing for a marathon sales event.

While both the nearby Canadian outlet malls will open at 8 a.m. on Friday, America's Fashion Outlet starts its sales event at 10 p.m. tonight. Doors won't close again until 9 p.m. the following night.

"It's essentially 24 hours of shopping so, for the power shoppers, they can shop all night long," says Tina McCuddin, who oversees the mall's marketing.

"I would say it's one of our best shopping days of the year," she adds.

Many of the mall's retailers are advertising 50 per cent or more off the entire store inventory. McCuddin says some stores will announce additional savings during the actual event.

When asked if she fears the low loonie will convince Black Friday shoppers to turn to Canada this year, McCuddin said, "The discounts, you just can't beat them, and all the additional [brand-name stores] we've opened are certainly going to be a draw."

Pro-shoppers chime in

Grbesic, the fashion blogger, contends that even when you factor in the exchange rate, the U.S. offers the best Black Friday bargains.

She says she often crosses the border for the shopping event and has witnessed amazing deals. "You can get a pair of Prada shoes for $150; if you want electronics, TVs — $300. You can get a lot more for your dollar even when you pay duty," she claims.

Grbesic also believes Americans won't be flocking to Canadian stores unless they also have family to visit. "I don't think they're going to come just for the deals," she says.

But Brooke Wilson in Toronto says Canada can compete. The editor of the online deals site Bargain Moose cross-border shopped on Black Friday last year. She bought a designer Kate Spade handbag online for $60, but got hit with a $30 duty charge.

With the added weak loonie, Wilson has decided she will only shop in Canada this time round. "A lot of the Canadian retailers are competing with the U.S. prices and really bringing the deals out," she says.

ABOUT THE AUTHOR

Sophia Harris

Business Reporter

Based in Toronto, Sophia Harris covers consumer and business for CBC News web, radio and TV. She previously worked as a CBC videojournalist in the Maritimes, where she won an Atlantic Journalism Award for her work. Got a story idea? Contact: sophia.harris@cbc.ca