act1980

Hi,

I am just curious to know as to why US stores in Canada are more expensive than the US?

When I visted in April, the only store that had the same pricing (on most of their stock) was American Eagle.

Shops such as Hollister, Abercrombie & Fitch, Banana Republic (I was advised by a lady working in the store to buy the bag I wanted in the US as it was cheaper by over $100) and Pottery Barn (especially) are more a fair bit more expensive.

Could someone please tell me what the reason for ths is?

Thanks!!

Rete

Import tax? The Canadian dollar is worth less than the US dollar therefore the mark up?

christmasoompa

Ok, this is no way answers your question (I have no idea by the way) but Canada has Pottery Barn?!? Ok, another thing to add to the 'pro' list, may well be worth two 'cons' that one!!

act1980

Yeah they do! And it's $$$$$$ more expensive than the US

iaink

Logisitcs, big country, small population, adds to the cost of getting goods to store

Higher wage costs for employees in canadian business...all our socilaised medicine and welfare provision has to be paid for by someone, and its the employers who pay in form of contributions and taxes that are lower in the relatively welfare free US.

For non NAFTA produced goods coming into US distribution centers and then over the border to canadian warehouses Im guessing there might be an element of duty, or at least handling charges to get them through the border. Our business assumes about 20% overhead just in moving stuff across the border in both customs and handling, plus duplicating paperwork and effort.

Exchange rate fluctuations also have an effect. Maybe AE set prices when the dollars were at parity. If they did they are getting burned big time now its at 82c again. I expect prices there will have to go up if thats the case. Most sensible businesses will operate on a long term exchange rate projection between 80 and 90 c canadian to the $1US

There is Im sure an element of charging more "because they can", but there are many other factors at work too.

bpc123

There are certain U.S. retailers that charge what they think they can get away with in Canada, such as the ones you mention. The pricing here is in no way reflective of the difference in currency value. Some of the most notorious 'gougers' are Pottery Barn and Banana Republic. Most U.S. headquartered companies, however, price similarly in Canada to what they do in the U.S., and in some cases less when you do the dollar conversion.