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Cross-border shopping is a quintessential part of Black Friday for some Canadians.
But with the Canada-U.S. land border closed to non-essential travel to limit the spread of COVID-19, hopping over the border for holiday shopping isn’t an option this year.
For Canadian retailers, the closure has created a captive market — at least for in-store shopping.
“In previous years, a lot of Canadians would just pop over the border to take advantage of the crazy deals down in the U.S., which often surpassed what we were getting in Canada,” says Tandy Thomas, an associate professor in the Smith School of Business at Queen's University.
“But the ability to do that easy cross-border shopping is no longer there.”
Thomas says the border closure creates a more favourable environment for Canadian retailers.
“They don't have to compete with their U.S. counterparts in the same way,” she says. “It’s literally a captive market.”
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