They're definitely feeling the pinch in the Point. Businesses in the tiny U.S. peninsula of Point Roberts have seen sales fall along with the declining Canadian dollar, but that doesn't mean shoppers have stopped crossing the line entirely.
Border crossings into Point Roberts dropped about 14 per cent last year compared to 2014, due in large part to the sagging loonie. The Canadian dollar has slid further this year, having dipped below the 70-cent U.S. level for the first time since 2003.
It's unclear how far it will go, but some forecasters have predicted it will slide to an all-time low by the end of 2016. That wouldn't be good news for Point Roberts businesses already experiencing declines.
Snider Vick at the Point Roberts Shell Center says sales are down in the 25 to 30 per cent range from two years ago. He says his business, like several others, is trying to adjust by offering special deals, including offering selected items and services at par, to lure shoppers south.
Richard Proctor, manager of Brewster's Fine Foods on Gulf Road, says business is clearly down, although they're fortunate to have loyal customers in the Point as well as Tsawwassen.
Proctor says alcohol is cheaper in Point Roberts, so they are handing out free wine club cards to customers. Up to 10 per cent of their bill can get accrued toward their cards, which they can use toward future purchases, including alcohol, something not allowed at B.C eateries.
Point Roberts Marketplace manager Dean Priestman says business is down but not to the extent where the supermarket has to lay off staff, adding Canadians continue to cross the border to pick up certain items.
"People are just coming across to make a quick stop. It's people coming across to get a parcel or get gas, they'll come in here and get some of those primary items, items like beer, wine, dairy and cheese. Then there's those oddball items they might not be able to get in Canada and that varies across the board."
Priestman says this is a slower time of year anyway, which is usually when they can undertake upgrades to the store.
"It's something we usually prepare for. It's down further than normal but not a totally unexpected thing."
Canadians frequently cross into the tiny peninsula to purchase gas, dairy products and access mailboxes used to facilitate online purchases from U.S. retailers. A report last summer by the Western Washington University's Border Policy Research Institute noted Point Roberts is home to just 1,300 residents, but its border crossing accounts for 14 per cent of vehicular traffic between Washington state and Canada.
That large volume, however, reflects a relatively small number of individuals as many cross multiple times in a day, the report noted. Many of the properties are also owned by Canadians.
In Whatcom County, Canadian shoppers have a significant impact upon the economy with between six and 16 per cent of taxable retail sales attributable to Canadians.
Laurie Trautman, the institute's associate director, told the Optimist most recent numbers from the Department of Revenue on the Whatcom County economy as a whole show a decrease of almost 20 per cent from 2013, while general merchandise sales are off just over 21 per cent and gas sales by 16 per cent.
"At this point, the impacts I am hearing about are mostly anecdotal. CBSA (Canada Border Services Agency) is reporting that they are seeing more Americans traveling into Canada, and certainly the number of Canadians traveling south has decreased," Trautman says.
"The general sense is that the big box stores located along the Guide Meridian, such as Target, Walmart and Costco, will be hit the most, but those aren't stores that will necessarily close from a decline in sales. Also, the retail market across the U.S. as a whole is down one to two per cent, which complicates an assessment of the impact of Canadian shoppers."
Noting that some feel the Canadian shopper is not as significant to their local economy as it was two decades ago, she says Canadians still have an incentive to cross the border to pick up merchandise from online sales and some estimates show 20 per cent of Lower Mainland residents have a post office box in the U.S. However, the number of Canadians picking up online purchases across the border is down, something that's impacting Point Roberts, which has become a hub.
Christy Petersen, owner of McFrugals Parcel Service, says her business had been increasing about 50 per cent annually until last year, but is off by around 30 per cent from a year ago.
She says that translates into fewer customers going to other Point businesses while they're across the line.
"Yup, we're way down, but I'm glad I have loyal customers from Canada. It's like a ghost town down here sometimes and everybody is feeling it. It was like this too, I think, about 10 years ago when the Canadian dollar was not as good."
Peterson says she's considering various promotions, including offering pickups at par one day a week.
TSB Shipping Plus manager Teresa Pope says all the parcel services are down substantially.
"It's definitely down here. I know people are still driving down here for the cheap gas and it was crazy for a while when they had the Powerball (lottery), but it's safe to say things are slower."
