For Canadian shoppers, United States is a big deal
Mike and Deedi McKernan trek from suburban Toronto to Pittsburgh twice a year for business trips.
Each time, they stop at Grove City Premium Outlets in Mercer County, a necessity to save on Christmas gifts for their 10 children.
“It's high quality and good prices,” said Mike McKernan, 60, of Mississauga, Ontario. “And we get 40 percent savings, on average, at least. Last year, it was 50 percent.”
Canadians are shopping in the United States in record numbers, according to the Canadian government. The number of people making overnight trips in June climbed 7.5 percent from the year before, to 1.9 million — the most since 1972, according to Statistics Canada, the country's national statistical agency.
A number of factors contributed to the increase. Canadian and U.S. dollars are on almost equal footing and border security, beefed up after 9/11, has relaxed a bit.
Marilyn Glassford, who owns Lakeshore Tours & Travel in Bowmanville, Ontario, points out another reason: the opportunity to save money.
“Everybody I know talks about doing their shopping in the U.S., and it makes sense. You can't afford to shop here,” she said.
Canadians pay a 13 percent sales tax in addition to paying about 13 percent more on average for comparable products than do Americans, a Bank of Montreal report this year found.
For example, magazines cost $6.49 in Canadian dollars, compared with $5.49 in the United States, the report found. Blu-ray movies in Canada cost $21.69, compared with $19.98 here, and running shoes cost $145.99 in Canada, compared with $105.99 here.
In June, the Canadian government raised duty-free exemption limits from $50 to $200 per person for U.S. stays of 24 hours and from $400 to $800 for stays of 48 hours. It did so in order to modernize purchase rules and to ease congestion at border crossings into Canada, government officials said, though business leaders opposed the idea.
An ‘easy sell'
“(Canadians) are definitely a target market for us,” said Emily Beck, director of tourism development for VisitErie. “Shopping is the biggest expenditure a tourist will do, other than hotels. And these people focus exclusively on shopping, especially.”
Glassford said half of her business involves shopping trips to the United States. Lakeshore booked nearly 25 such trips in 2012, many to outlets and malls in Erie and Grove City.
“That is our biggest shopping tour,” said Glassford, calling the tax-free clothing and shoes in Pennsylvania an “easy sell.”
“It seems like every woman on the planet knows that,” she said.
Toni Bianchi does. She made her first U.S. shopping trip with her husband, Domenic, the weekend of Dec. 8 as part of a charter bus tour organized by the Toronto Social Group. The trip started at Erie's Millcreek Mall on Saturday and included an overnight stay at the Comfort Suites in Edinboro. It ended on Sunday at the Grove City outlets.
“No taxes,” said Bianchi, 45, of Maple, Ontario. “That's a big thing for us.”
Her husband scored a $200 leather jacket for $37, as well as Christmas gifts for their three children.
“There's more selection down here, varieties of stores we don't have,” he said.
Big business for buses
The Canadian tour bus industry is so prevalent that VisitErie is a member of the Ontario Motor Coach Association, Beck said. “Everybody in Ontario knows about Erie shopping. We've lived with this for such a long time.”
Hundreds of tour buses packed with Canadian shoppers stop in Erie and Grove City year-round, although the busiest months are October and November, trip organizers said.
Some specifically advertise Erie and Grove City tours; others include them as stops on the way to Washington or New York City.
The reach of Canadian shoppers extends to Tanger Outlet Center in North Strabane, Washington County.
“It's definitely a growing market for us,” said Tanger General Manager Jodi Dagme.
None of the Pennsylvania cities quantifies the Canadian impact on the local economy, but Canadians spent $3.8 billion in the United States in the third quarter of this year, according to Statistics Canada. The Bank of Montreal report conservatively estimated cross-border shopping annually drains $20 billion from the Canadian economy.
That figure could grow, said Doug Porter, the bank's deputy chief economist and author of the report, “Cross-Border Shopping: Here Comes the Flood.”
Tour operators such as Glassford are counting on that. She scheduled as many bus trips to the United States in 2013 as her company had this year.
“Our business is amazing,” Glassford said. “It's growing every year.”
The McKernans, who don't travel here by bus, said they plan to continue shopping in Grove City. Last year, they spent about $1,500, and they spent at least $1,200 this year during their most recent stop, Mike McKernan said.
“The people are very friendly,” he said, “and the prices are great.”
Jason Cato is a staff writer for Trib Total Media. He can be reached at 412-320-7936 or firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Allegheny County adoption event joins 40 children with families
- Man’s death by runaway wheel on Route 28 ruled accident
- Emergency personnel contain fire at Whitehall apartment complex
- Newsmaker: Christopher W. Robinson
- 6 shot at Clairton speakeasy; police seek suspects
- Youngsters embrace technology that combines art, software in 3D printing
- Cybersecurity experts warn Pittsburgh conference about dangers of hacking
- Carrick man struck by dump truck dies; woman critically injured
- Baltimore man killed in McKeesport crash
- WVU frat brothers charged with hazing pledges
- Former FBI director Mueller: Home hacks called on par with globals