The back-to-school shopping season is underway as retailers roll out advertisements and signs promoting everything from school supplies, clothing and footwear.
Financial services firm Ernst & Young is predicting a four per cent boost in back-to-school spending in Canada, due in part to the weak Canadian dollar.
That’s welcome news for some Winnipeg store owners who depend on this time of year to give a boost to their bottom-line.
Despite the thought of their vacation ending, it's an exciting time of year for students Kira Hamilton and Faith-Ann Clarke.
"Because then we get to get new clothes and new stuff,” said Clarke. “And show it off to our classmates, too,” added Hamilton.
Retailers are also excited, even more so this summer.
Amid economic uncertainty, higher housing costs and inflation financial services organization Ernst & Young is predicting a four per cent boost in back-to-school sales in Canada this year, compared to 2014. It’s due in part to the weak Canadian dollar.
"The Canadian dollar having depreciated means they will spend less cross-border both physically and online and that translates into higher sales for Canadian retailers," said Daniel Baer with Ernst & Young.
Ernst & Young said there are other factors contributing to an expected increase in back-to-school spending.
The organization said Canadians have a little more disposable income due to the recent Universal Child Care Benefit payments, lower interest rates and gas prices, which still seem high but are actually down year-over-year.
The back-to-school season is an important one for second-hand clothing store owner Nathalie Minville.
She said shoppers have already started stocking up for the upcoming year and expects the low loonie may bring more traffic through her store than this time last year.
"People are going to want to stay here and do their back to school shopping here to get more for their buck," said Minville.
Alyssa Schlamp and her grandmother Dorothy have gone to the United States for shopping in the past but this year the family plans on spending their money locally.
"When we have looked in the U.S., usually the prices are very competitive with what we have here but for the difference in the dollar, it's better to shop in Canada right now," said Schlamp.
While that's good news for businesses selling back-to-school supplies, the Winnipeg Chamber of Commerce said a lower loonie poses challenges for other companies.
"For those retailers or businesses that are purchasing—their input costs are in U.S. dollars—it absolutely translates into higher costs for them and that ultimately will be passed on to the consumer,” said Vice- President Loren Remillard.
