The dropping Canadian dollar has Windsor business owners hoping for a merrier holiday season.
The loonie is at 87.5 cents U.S. and some are predicting the dollar could fall as low as 85 cents before the end of the year.
Local merchants say it could encourage avid cross border shoppers to spend their money at home instead.
“We benefit, especially as a border city,” says Abe Hayek, who opened a home decor shop on Ottawa Street last month.
The loonie is at its lowest level in five years. As a long-time retail manager, Hayek says he's seen the effects of the changing dollar. Over the last two years, the loonie has slid from over a dollar to its current position.
Hayek says the dramatic decline should work in favour of Windsor retailers this holiday season.
“This will help in both ways,” says Hayek. “Canadians won’t go there and shop and it will make Americans come and shop here. This should be good for the season.”
Experts say the Canadian government will also benefit by collecting more in sales tax. The consumers could be the losers, whether they opt to pay the generally higher retail and wholesale markups in Canada or the higher exchange rate on their purchases in the U.S.
