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Foreign shoppers hit 'mall of America'
After getting directions to Bloomingdale's department store,[link widoczny dla zalogowanych], Mr. Bainbridge, his wife, daughter, granddaughter, and two friends are on buy their Gifts - at prices only someone from Europe considers cheap.
This holiday period, some US retailers will discover planeloads of foreign tourists taking advantage of the weak - and getting weaker - US dollar. They're arriving with empty suitcases and shopping lists and leaving with Levis, handbags, shoes, and computers. The majority are arriving for two main or three days or even a single day of mad "bargain" hunting. As well as for those who don't want to cope with the overseas travel, some e-retailers are redesigning their websites in languages and adding currency translation aids.
"The US is a big discount shopping mall for foreigners,[link widoczny dla zalogowanych]," says Scott Krugman, a spokesman for the National Retail Federation in Washington. The overseas bargain hunters is probably not enough to create the season sparkle for retailers overall, he cautions,[link widoczny dla zalogowanych], although "the foreign buying will help certain stores."
It's not just the English, Germans,[link widoczny dla zalogowanych], and French cleaning out the shelves. To the North, the Canadians are flexing their Loonies. Out West, you will find sightings of Australians armed with a strong currency.
As well as their capability to buy just keeps rising. A week ago,[link widoczny dla zalogowanych], the dollar fell to a different record low from the euro. And last month, the Federal Reserve reported the dollar hit the lowest level against a gift basket of major currencies since July 1995.
Among the causes of the drop: the slowing US economy and concerns that the Federal Reserve will need to drop rates of interest again in December.
But if the economy is striking the brakes, there is no sign of it on the day after Thanksgiving, better known as Black Friday, since that was previously your day when many retailers posted a profit for the year. According to Chicago-based ShopperTrak RCT Corp., which monitors sales at more than 50,000 stores, sales rose 8.3 % over last year.
Despite the strong day and the boost from foreign buying,[link widoczny dla zalogowanych], analysts remained as wary of the prospects for the season. "We're still sticking with a 4 percent increase over this past year,[link widoczny dla zalogowanych]," says Mr. Krugman. One of the chief concerns: the price of gasoline, which is averaging $3.07 a gallon nationally. In surveys,[link widoczny dla zalogowanych], US consumers the rising price will limit the amount of trips they create to the mall.
Bloomingdale's seems to be scooping up its fair share of European currencies, judging in the half-dozen bags being carried by Nicola Taylor and Rachel Omahony of Herefordshire,[link widoczny dla zalogowanych], England. Pointing to a bag, Ms. Omahony says, "Uggs," referring to the brand of boots. "At home, they are £180, here they are $100 [£49]." Her friend, Ms. Taylor, says the savings are comparable for Levi's blue jeans. "It's all really quite reasonable," she says with a smile.
To haul home the loot, many foreigners are arriving with extra luggage. "There were two ladies on our flight with six or seven empty suitcases," recalls Bainbridge.
Foreign shoppers know they wield the strength of the purse. Some 97 percent of Canadians were aware of their currency's strength in contrast to the dollar,[link widoczny dla zalogowanych], according to a poll conducted by the International Council of Shopping malls last month. 30 % of Canadians polled intended to cross the border to look in america or buy online from the US.
Some e-retailers are targeting foreigners this holiday period. This is the case at eFashion Solutions, which now sells its 35 brands in 12 currencies and six languages. And it has negotiated using the United States Post Office to zip its goods abroad for a reasonable price.
"For the company in general, we're shipping 20 % away from US, using the goal of reaching 30 % by next June," says CEO Ed Foy.
But for most foreigners, the program is to take advantage of the weak dollar at this time. A couple from London standing outside Carnegie Hall do not have time to talk. "We're only right here for the day," says the girl. "We have to shop."
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