U.S. border malls try to counter low loonie with special offers for Canadian shoppers

Iva Grbesic's sister is getting married this August. That means new wedding outfits for her entire family. Normally, Grbesic, who lives in Toronto, would make a beeline for the border to snap up new threads at a nearby U.S. mall.

But the stylist and mother of four hasn't cross-border shopped since the Canadian dollar began its dismal decline last fall.

"The discrepancy is so bad, there's not even a point," says Grbesic.

The loonierecentlyrebounded somewhatbut still hovers around a meagre 76cents U.S.

"Unless it's rock bottom prices, it doesn't pay to cross-border shop," said Grbesic.

We want you back

Now, some U.S.malls near the border are looking for ways to convince shoppers like Grbesic they should come back.

To soften the blow of a stubbornly weak loonie, the malls are offering special incentives to Canadian shoppers. Offers range from exclusive gifts to at-par deals, and many begin this long weekend.

"They're really noticing the decrease in Canadian shoppers now," said Stephen Fine, president of shopping resource site CrossBorderShopping.

According to Statistics Canada's latest numbers, 977,686 Canadian automobiles made same-day trips to the U.S. this March. That's a decline of 15 per cent compared to the same time last year. Overnight trips declined by 13 per cent.

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Bellis Fair accepting loonieatpar

Bellis Fair Mall in Bellingham, Wash.,is offering deals that will remind neighbouring Vancouverites of the good old days, when the loonie was equal in value to the U.S. greenback.

At least 18 of the mall's retailers, including Macy's, JCPennyand the Gap, are accepting the loonie at par during Canadian long weekends, up until Remembrance Day in November.

For this long weekend, the at-par offer runs from Friday until Monday.

The idea was conceived by Bellis Fair's senior general manager, Ren Morris.

"I just thought, how can we help our Canadian shoppers?" she said."They want to come, but the loonie is low."

Morris estimates Bellis Fair has lost about 25 per cent of its Canadian traffic compared totwo years ago when the loonie was above 90 cents US.

"Not just the mall but our whole community has felt the drop," she said. "The parking lots aren't filled completely with blue and white [licence] plates."

Morris says it took much legwork to convince retailers to buy into the at-par idea. She said the breakthrough came when she convinced Macy's VP of marketing to sign up.

"She said, 'Why not, let's do it,' and it just kind of snowballed from there."

Nearby hotels are also joining in by offering discounts to Canadian shoppers spending the night. At Four Points by Sheraton, weekend room rates will also be offered at-par.

Gift cards for Canadians

Grbesic says an at-par deal would convince her to cross the border.

"That would turn the tide for me," she said.

But she lives in Toronto, far from Bellis Fair Mall. However, U.S. border malls in her region are also doling out deals to woo Canadianshoppers.

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Walden Galleria in Buffalo has teamed up with a neighbouring Hampton Inn, offering cross border shoppers roomrates at-par plus a free $20 mall gift card. The offer runs from now until the end of June.

Some Walden Galleria retailers are also promoting discounts for Canadians this month of up to 25 per cent.

Fashion Outlets in Niagara Falls, N.Y.,is trying to entice Canadians with a $20 Visa gift card for every $200 spent up toa maximum of $100 in gift cards.

"There's a direct correlation to Canadian traffic when the loonie declines," said marketing manager Meghan Ayers. "We're incentivizing Canadians to cross the border."

Ayers adds that if the program is successful, the mall will likely offer it again.

Will deals turn the tide?

Fine ofCrossBorderShoppingsays the deals might help spark a bump in Canadian trafficheadedto the States to shop.

"With the summer weather, and the offers and the rebound in the loonie, you'll start seeing more Canadians going back to the U.S.," he predicts.

But Grbesic likely won't beone of them. She says a $20 gift card is not enough to convince her to shop in the U.S.

"That doesn't even really cover my gas," she said.

Grbesic says she'll stick to this side of the border until the loonie gains a lot more ground or a U.S. mall near her is willing to take her Canadian dollars at par.

"That would totally make me shop," she said.