Just in time for Christmas, many Canadian retailers are planing to raise prices due to the weak Canadian dollar coupled with higher costs on imported goods.
Businesses have largely steered away from from hiking prices, according to an internal Retail Council of Canada report. But now they may have no choice but to hit up consumers for more of their hard-earned cash.
Many Canadian companies, like Canadian Tire and Dollarama, make most of their purchases in U.S. dollars. Since the value of the American dollar has soared, their purchasing has become more expensive. These companies can only find so many “efficiencies” before being forced to target pricing.
Does it feel like, no matter what’s happening in the financial world, or what state our economy or the American economy is in, consumers are always screwed in the end? When the Canadian dollar was above parity, meaning Canadian Tire and Dollarama were able to purchase products at lower cost, did you see prices drop? Maybe books were slightly cheaper.
When the dollar was strong, prices went up. As the dollar weakens, prices are going up again. Do you think theses businesses are giving us legitimate reasons for price hikes, or are they trying to use yet another excuse to hit our wallets?