Major retailers in Canada are starting to lower prices in time for the holiday season as the loonie continues to dominate the U.S. greenback.
Starting Thursday, Wal-Mart Canada announced it will sell all of its books, magazines, greeting cards and gift wrap at American list prices.
"With the strength of the loonie leading some Canadians to consider U.S. shopping alternatives, we're creating a more compelling case for customers to shop and save with Wal-Mart Canada,'' the company, which has 293 outlets nationwide, said in a statement.
Meanwhile, Indigo Books and Music is now offering discounts of up to 20 per cent on customers' favourite books.
Indigo's chief merchant, Joel Silver, told CTV Newsnet that it took a long time to lower prices because publishers set the prices on books six to nine months in advance.
"We deal with over 1,000 different book vendors and carry over a million titles in our system so it takes a long time to get everyone lined up on a program that's going to work," he said.
But now, Silver said prices have been reduced by 5 to 30 per cent on 25,000 titles.
The company's bestseller-discount program also gives consumers 30 to 40 per cent off certain books.
"The customer wants to shop Canadian and we want to do everything we can, including adjusting prices, to keep them in Canada," said Silver.
He also warned Canadians to watch out for high shipping costs if they choose to buy books online from U.S. retailers.
But some companies in the U.S. are now offering free shipping to further entice Canadian buyers.
"Canada Post is telling us that they're already... seeing an 18 per cent increase over last year so people are buying online, they're buying in the U.S.," CTV's consumer reporter Pat Foran said Thursday.
"Even though Christmas and the holidays are two months away they're already saying that you might have to order early just to get what you want."
Hudson's Bay Co. also recently announced it would reduce prices on items at nearly 300 Zellers stores.
Chrysler Canada is also implementing new incentives for buyers and will cut monthly lease and financing rates.
Dollar hits new high and retreats
The price cuts come as the Canadian dollar passed 106 cents US in after-hours trading Wednesday -- marking a modern-era high.
But it closed closed down 0.73 of a cent to 105.12 cents U.S. on Thursday.
"In electronic trading, the loonie touched 106.17 (cents US) which would be the highest level ever against the U.S. dollar," BNN's Michael Kane reported Thursday.
The previous modern-era record was 106.14 cents US, achieved on Aug. 21, 1957.
"The lift in the Canadian dollar was due in part to a hefty rise in the price of oil," said Kane.
On Thursday, U.S. oil hit a record high $96.24 a barrel following a drop in U.S. crude oil stocks and another cut in interest rates south of the border.
Higher gold prices, a falling greenback and tax relief for corporations in Canada also helped the loonie surge forward.
Maria Jones, foreign exchange strategist for TD Securities, told The Canadian Press that the loonie is seeing gains because of "almost a perfect storm" of factors.
The Canadian dollar was trading at 105.57 cents US Thursday morning, down 0.28 of a cent from Wednesday's official trading day close of 105.85 cents US.
With files from The Canadian Press
