Canadian retailers are benefiting from record profit margins, however, these retailers aren't passing their gains to consumers. Canadian retailers such as Sears and Reitmans say that they won't be cutting prices. With the holiday shopping season nearly here, Christmas shoppers in Canada aren't likely to see any savings.

As the Canadian dollar rises it becomes cheaper for Canadian retailers to buy goods from the United States. American goods are paid for in US dollars. With the Canadian dollar equal to the US dollar it's cheaper for Canadian retailers to buy products to sell in Canada. However, none of this savings is being passed on to consumers. Retailers are keeping their gains resulting from a favorable exchange rate.

Many shoppers feel that Canadian companies are gouging consumers by pocketing the gains in exchange rates. Companies respond by saying that they have higher costs such as transportation.

As Canadian consumers come to perceive the inequality between Canadian and American prices for goods it's likely that more and more Canadians will cross the border to shop. Canadian retailers may lose sales to US retailers. So far this isn't a concern for major Canadian retailers.