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Published August 18, 2007 11:30 pm - Many North Country businesses are reporting large increases in Canadian visitors, and the trend is expected to continue.

BUSINESS: Canadian exchange rate helps North Country businesses


By DAN HEATH
Staff Writer

The increasing strength of the Canadian dollar compared to the U.S. dollar is resulting in large increases for North Country businesses.

Wednesday, the Bank of Canada Web site showed the Canadian dollar worth 93 cents. It was worth 91 cents last June and 62 cents in January 2002.

Matt Nephew of Nephew's Discount Liquor and Wine in Champlain said that's a incredible rate for his Canadian customers. He said the store has a very heavy Canadian traffic flow right now.

"Last year was a great year, and this year's even better," he said. "We're busier by at least 10 percent, and last year was a big year."

Nephew said things really picked up around the end of May. Liquor wholesalers he's spoken with are reporting increased Canadian business as far away as Lake George, Lake Placid, Massena and Malone.

"I've been here 11 years. My first year, the exchange rate was 71 cents," Nephew said.

For three of those years, it was in the low 60s, he said.

He credits Pomerleau Real Estate for taking care of the struggling shopkeepers during those lean years. The plaza is now the most full he's ever seen it.

Nephew said to be successful along the border, a liquor store needs a 50-50 mix of Canadian and American customers. His store has at least that ratio of Canadian customers.

That customer base leads him to increase his inventory of French and Australian wines threefold in June, July and August. In October, he flips back to more California and other domestic wines.

Nephew said business starts to pick up on Thursday night and Friday, when Canadians head down to their camps and boats in the area.

The opening of the Price Chopper in the plaza has also been a big boost, Nephew said. He said a lot of his clientele stops at the grocery and his store, then heads to the marina. Some of that business was probably lost to Plattsburgh while there was no grocery store in Champlain.

Champlain Centre Marketing Director Joan LaPier said Canadian business is also up at the mall. The Canadian business started to increase last year, she said.

"Last year and this year, the increase has been 35 to 50 percent," LaPier said. "We document that by traffic counts."

LaPier said Monday, which was the annual Civic Holiday in Canada, found many Canadian shoppers in Plattsburgh. That's unusual for a weekday.



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