Price jumps at Canadian retailers spell trouble

By

Obi Anyanwu

Published
Oct 5, 2015

Canadian retail prices are expected to rise as a result of a weak Canadian dollar that hit an 11-year low coupled with a rising US dollar.

According to a study by the Retail Council of Canada, merchants will have to increase its prices to combat the loonie’s 16% decrease against the US dollar, and more is still to come.
 
The report found that 49% of retailers said the loonie’s devaluation has increased their costs more than 5%. Many retailers have tried to maintain the same prices, but they cannot prolong the inevitable. Statistics Canada, according to Business News Network, said consumer prices rose 1.3% in August from July due to higher costs of food, shelter, home furnishings and clothing.

According to NPD Group Canada, apparel prices increased 2% to an average of $17.91 for the year to the end of June, and outerwear increased 5% to $57.84 in the same period.
 
Randy Harris, the President of apparel researcher, Trendex North America, told Business News Network that he expects clothing prices to rise as much as 5% starting at the end of 2015.