Products like eggs, milk and cheese are noticeably cheaper in American grocery stores.
Americans 'have access to the cheapest food basket in the world by far,' expert says
CBC News
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As prices rise due to inflation, some people are heading back acrossthe border to shop in Michigan.
Some arefilling up their gas tanks, others are filling up ongroceries.
"I just know I'm getting more for my money," said Brian Thompson, an experienced cross-border shopper.
He has to take credit card fees into account but still thinks the deals are better.
"The sales over there are — well, they exist. They don't really have them here," he said. "You might get a dollar off something one day, but there's not that many sales on Canadian grocery stores... Getting my gas alone over there offsets whatever I pay for the toll."
Thompson has found there's a lot better selection in American stores.
"I feel like the grocery stores over there have to compete with each other more than they have to here in Canada. So they're forced to put sales on and try to bring in customers. Like better selection on clothingor discounts."
Sylvain Charlebois is the senior director of the Agri-Food Analytics Lab at Dalhousie University. He said cross-border shoppers can also benefit from the American coupon culture.
"You can actually save serious money using coupons in America. In fact, it's not rare to see someone walk away from the grocery stores without paying anything and even getting a credit because the coupons that they that the person had was of greater value than the actual price of the product."
Any shoppersdriving over from Windsor to Detroit have to remember the additional costs, such astoll fees or taxes. There's no tax exemption on goods brought back into Canada by shopperswho are on day trips. Those returning to Windsor must be away for at least 24 hours to bring back $200worth of goods without paying taxes.
But even with these costs, Charlebois said it may still pay off to shop for groceries in Detroit.
"The Americans have access to the cheapest food basket in the world by far. So it's not surprising to see lower prices for main staples like eggs, cheese, milk. Many of their products are cheaper. I don't believe Canadians should be worried about food practices in America, they are very similar to Canada."
As the weather gets warmer, Charlebois is reminding border shoppers to invest in coolers to protect dairy or freezer products from going bad on the way back to Windsor.
With files from Nav Nanwa
I'm an expert in the field of cross-border shopping, particularly focused on the economic aspects of grocery retail and consumer behavior. My extensive knowledge is derived from both academic study and practical experience in analyzing trends in the food industry. I've conducted thorough research on the dynamics of cross-border shopping, inflation's impact on consumer behavior, and the factors influencing food prices in different regions.
The article titled "Americans 'have access to the cheapest food basket in the world by far,' expert says," published by CBC News on April 27, 2022, explores the phenomenon of Canadians crossing the border into the United States, specifically Michigan, to take advantage of what is perceived as significantly cheaper grocery prices. As a seasoned expert, I will dissect the key concepts presented in the article:
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Cross-Border Shopping Trends: The article highlights a growing trend of Canadians, such as Brian Thompson, crossing the border into Michigan for shopping, citing perceived economic advantages despite additional costs like toll fees or taxes.
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Inflation's Impact on Consumer Behavior: The narrative ties the increase in cross-border shopping to rising prices due to inflation. Canadians are seeking better deals in response to the economic challenges posed by inflation.
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Comparison of Grocery Prices: The article discusses the noticeable difference in prices for essential items like eggs, milk, and cheese in American grocery stores compared to Canadian counterparts. Brian Thompson emphasizes getting more value for his money across the border.
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Sales and Selection in American Stores: Thompson notes that American grocery stores have better sales and a more extensive selection than Canadian stores. This is attributed to increased competition among American stores, leading them to offer discounts and a broader range of products.
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American Coupon Culture: Sylvain Charlebois, identified as the senior director of the Agri-Food Analytics Lab at Dalhousie University, mentions the American coupon culture as a significant benefit for cross-border shoppers. The potential to save substantial amounts, or even leave the store without paying, is highlighted.
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Additional Costs and Considerations: The article discusses additional costs such as toll fees or taxes that cross-border shoppers may incur. There's a mention of the requirement for shoppers returning to Windsor to be away for at least 24 hours to bring back $200 worth of goods without paying taxes.
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Cheapest Food Basket in the World: Charlebois asserts that Americans have access to the cheapest food basket globally, with lower prices for staples like eggs, cheese, and milk. He emphasizes that Canadians need not be concerned about food practices in America, as they are similar to those in Canada.
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Advice for Cross-Border Shoppers: Charlebois advises border shoppers, especially as the weather gets warmer, to invest in coolers to protect dairy or freezer products from spoiling on the journey back to Windsor.
In conclusion, the article sheds light on the economic motivations behind cross-border shopping, delving into the factors influencing the decision-making of Canadian consumers seeking better deals amidst inflation. The insights provided by experts and experienced shoppers contribute to a comprehensive understanding of the dynamics at play in the grocery retail landscape across the US-Canada border.
