Retailers in squeeze to reduce prices
Wal-Mart selling books, magazines at U.S. prices
Last Updated: Friday, November 2, 2007 | 11:48 AM CT
CBC News
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Wal-Mart Canada announced Thursday shoppers will pay the U.S. list price on books, greetings cards and some gift items — any product bearing double price tags.
Winnipeg shopper Joanne Westman was among those who welcomed the move, as Canadians have grown impatient with prices that resist change, even as the dollar reached $1.07 US in Friday trading.
"It's about time, it really is about time," Westman said.
But Elaine Zacharias, who visited a Winnipeg Wal-Mart Thursday, pushed the chain to go further.
"That's a start. It's not good enough, in my opinion. The dollar closed at almost $1.06 yesterday; why would they only be matching it? Why aren't they lowering the prices?"
A Wal-Mart manager said matching the U.S. price would hurt the company's bottom line.
"In some cases, we will be losing some margin on some items. However, we're committed to lowering the price of the cost of living for Canadians," said Darrell Winters, who manages a Wal-Mart store in west Winnipeg.
Indigo Books and Music Inc., which owns the Chapters chain, is discounting all books by 20 per cent, but says books will always cost more in Canada because the publishing industry is smaller.
Some retailers in a bind
Falling prices can also mean someone's getting burned.
Small business owner Anne Joudan, who runs the Paper Gallery in Winnipeg, said her gift shop can't afford to keep up with price drops. Her gift cards were bought months ago, and matching the U.S. price would be a problem.
"It would make things very difficult; we'd probably have to cut back on our staff," she said. "We do pay rent, we have utilities — we have the costs of doing business. And if we're forced into that situation I think staff would be the first thing to be cut."
As a shopper, Westman knows it's tough for local businesses to compete. "I really feel sorry, but as a consumer, I want the best deal for my money," she said.
Some stores are finding a middle ground.
McNally Robinson Booksellers has been reducing prices as it negotiates better deals.
The new prices may not be as low as American ones, but they're not as high as the old Canadian ones.
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