Business

Cross-border shopping to rise, survey says

More Canadians plan cross-border shopping over the holiday season, according to a survey released Friday by the Bank of Montreal.
Shoppers walk to stores at the Laurier shopping centre in Quebec City in December 2010. A survey suggests that despite an increase in cross-border shopping, Canadian retail sales this holiday season should rise by between two and three per cent from last year. Jacques Boissinot/Canadian Press

More Canadians plan cross-border shopping over the holiday season, according to a survey released Friday by the Bank of Montreal.

The most likely cross-border shoppers:

  • The survey suggests shoppers from British Columbia, Ontario and the Atlantic provinces are the most likely to cross-border shop, at from 24 to 25 per cent.

The least likely:

  • Quebecers, at six per cent.

And: 

  • Thirteen to 14 per cent of Canadians in the Prairies and Alberta say they will shop in the U.S.
  • Women are slightly more likely than men to shop cross border, at 19 per cent versus 17 per cent.

The Bank’s survey found 18 per cent of those polled plan to shop in the United States this season, up five percentage points from last year.

The peak American retail season begins on Nov. 25 or Black Friday, the day following American Thanksgiving. It gets its name from the fact that many retailers rely on holiday sales to make it into the black, or become profitable, for the year.

The survey also found that Canadians are planning to spend almost $1,397 each this year on holiday shopping, travel and entertaining.

"With the ongoing strength of the Canadian dollar, a still significant — although narrowing — gap between Canadian and U.S. retail prices and proximity to U.S. cities and shops, it isn't surprising to see more Canadians planning to head south of the border to shop this holiday season," said Doug Porter, Deputy Chief Economist, BMO Capital Markets.

"Nonetheless, BMO forecasts that Canadian holiday retail sales receipts, excluding auto and gasoline sales, should increase between two and three per cent, year-over-year, in November/December."

The Canadian dollar closed up a tenth of a cent Friday at 97.35 cents US.

The poll surveyed 1508 Canadians and had margin of error of 2.5 per cent.

(This survey is not scientific. Results are based on readers' responses.)