IFR Monitoring

IFR Monitoring

October 30, 2007 13:04 ET

Despite Dollar Parity, Advertised Pricing at Canadian Retail is 21 to 80% Higher Than the U.S.

The current strength of the Canadian dollar over the U.S. poses new challenges for Canadian retailers and manufacturers. During October, when the Canadian dollar was strong, Canadian retailers continued to advertise many products at 21 to 80% higher price-points than in the U.S.

NIAGARA FALLS, ONTARIO--(Marketwire - Oct. 30, 2007) - During October 2007, IFR Monitoring found advertised pricing for many consumer electronics products showed little sign of change at Canadian retail, despite the strength of the Canadian dollar during this period. Retailers across Canada advertised many consumer electronics products ranging in price from 21 to 80% higher than in the U.S.

IFR Monitoring, a global research company specializing in price monitoring, conducted a unique analysis of Canadian retailer advertising activity from August to October 2007. The purpose of the study was to examine pricing competitiveness between Canadian and U.S. retailers, given the growth and strength of the Canadian dollar.

During the 3-month period, IFR Monitoring analyzed thousands of advertised manufacturer models across several categories including compact digital cameras, LCD/plasma televisions, consumer GPS receivers, printers and notebook computers. Across these categories, price variances ranging from 21 to 80% were found on identical models advertised on both sides of the border.

"The disparity of advertised pricing between U.S. and Canadian retail remains consistent across most manufacturers and retailers, regardless of the Canadian dollar's strength," said James Kennedy, managing director of IFR Monitoring North America. "With the largest holiday season approaching, retailers across Canada will face more challenges if the dollar remains strong."

The in-depth analysis by IFR Monitoring found that the most-advertised consumer GPS receiver during the 3-month period of August to October carried an October price-point of $279 CAD against a $199 USD value across the border, a difference of 40%.

During the same 3-month period, the most-advertised laser printer model carried an October price-point of $179 CAD against a $99 USD value, an 80% price difference.

While some Canadian retailers are dropping prices to catch up, even after the price drops, the gap still remains large. The most-advertised flat panel television from August to October had a 52% higher price tag in Canada during August, a 36% higher price tag in September, and a 28% higher price tag in October. During the entire 3-month period, U.S. retail advertised pricing for the same model remained unchanged.

About IFR Group:

IFR Monitoring tracks advertised pricing, promotion and placement of products for over 2,000 retailers across the U.S. and Canada. IFR Monitoring exists in over 55 countries across the globe and is part of the GfK Group, the fifth largest market research organization worldwide.

Contact Information

  • IFR Monitoring
    Noemi VanDyk
    Senior Business Analyst
    (905) 374-4596 ext 13
    Website: www.ifrmonitoring.us