Although people can spend more south-of-the-border, local retailers are encouraging people to stay home.
The federal government announced increases for Canadians shopping in the US in its budget Thursday. Those travelling in the US for more than 24 hours but less than 48 can now bring back $200 in tax-exempt goods, it used to be $50. If you’re gone for than 48, the limit is $800. It used to take a week to bring back $750. The changes, which go into effect June 1, 2012, will actually lose the government around $13 million in its first year and $17 million the next.
Intercity Shopping Centre general manager Tony Stapley said it’s going to be more difficult for Thunder Bay retailers to compete with Miller Hill Mall in Duluth, Intercity’s biggest competition.
“It’s not going to help our retailers here in town every dollar that leaves it’s just not coming back,” Stapley said.
People always ask Stapley why larger retailers like Abercrombie & Fitch aren’t in Thunder Bay.
“They don’t need to come here because all of the Thunder Bay money is going down there,” he said.
Stapley questions why the federal government would make such a move.
“They’re saying that they’re trying to support us but it doesn’t sound like they are,” he said. “It’s not a very supportive front for our government to take.”
Power Centre manager Dave Radford agrees.
“It confuses me. I don’t’ understand why and I don’t understand why they thought this was a necessity,” he said.
Still, Radford said he’s sure smart local shoppers will realize the benefits of shopping local. He understands that people on a shopping spree in the US think they’re getting deals but everything from warranties to service will be better if a product is bought in Thunder Bay. It also helps a business like the Power Centre, which has been around since 1988 and employs almost 50 people, stay in business.
“A lot of people don’t realize when they’re shopping outside of the city itself… you’re taking money out of your friends out of your families pocketbooks,” he said. “If you can get (a product) here back at home for a similar price or at least a very close please do that.”
