A UPS-commissioned survey has noted that Canadian SMEs believe the country’s exporters should be concerned about the impact of the United States’ rising national debt and begin looking for markets beyond the US.
Read MoreThe ritual has resumed, as it always does when the Canadian dollar strengthens against the U. S. dollar. Throngs of Canadian shoppers cross the border in search of lower prices and greater selection at American stores.
But when the Canadian dollar reached parity last week, there was a new twist: online sales now let Canadians hunt for bargains in the United States without leaving home. If early indications hold true, some of the biggest winners from the rise of the Canadian dollar may ultimately be online retailers based in the United States. Because Canada’s relatively small population of just 33 million makes online operations less cost-effective, few Canadian retailers – less than a third by some estimates – sell through the Web. That limited local competition, combined with a high Canadian dollar and the incremental cost of expanding into Canada, make the country a tempting target for American retailers.
No one measures Canadian cross-border spending, virtual or otherwise. But, Paulina Sazon, a direct marketing strategist at Canada Post, said that the Canadian postal service had seen the volume of shipments through its special cross-border service for U.S. retailers increase 38 percent over the last year
A spokeswoman at UPS Canada, Christina Falcone, said the shipping company had seen “significant growth,” thanks to the strengthening Canadian dollar.
Read MoreUnited Parcel Service (NYSE:UPS) today
announced that Alan Gershenhorn, a 23-year veteran of UPS, has been promoted
to president of UPS Canada. Gershenhorn, will be responsible for all UPS
operations in Canada, where UPS has been operating since 1975.
In his new role, Gershenhorn will draw on his extensive experience to
drive UPS Canada as an enabler of global commerce.
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