New Brunswickers shop at home as loonie continues slide
Dollar now sits at lowest point in six years and border retails shops feel the difference
The sinking Canadian dollar is keeping many New Brunswickers in the province instead of crossing the border to do their shopping.
The loonie sank to its lowest point in six years against the U.S. dollar on Wednesday, shortly after Bank of Canada Governor Stephen Poloz announced an interest rate cut.
On Thursday, the loonie closed at 77.04 cents compared to the U.S. dollar.
The number of Canadians crossing the border has been consistently lower since the loonie began falling, by as much as 19 per cent.
When fewer Canadians cross the border, St. Stephen business owner Stefon Bortolussi says that is good news for his store.
"It certainly helps sales because the fewer people crossing the border and leaving their money in the U.S., the more people there are staying home spending in New Brunswick in our own town and that increases sales for sure," he said.
Not far away, in Calais, Me., businesses are having a very different experience.
With the dollar reaching new lows, Burgess said Canadians just aren't coming into his store in the numbers that he is used to.
"What they're saying is they still love to shop Marden's," he said.
"But the trip that they used to make every week or every two weeks they're making every four to six weeks."
Burgess said he believes the downturn in Canadian customers is simply a part of a larger cycle and he`s confident the Canadians will return when the loonie is back up.