U.S. tariffs hit Feb. 4: Regina shop expects price hike at restock

At least one shop in Regina is bracing for higher prices on their shelves with the U.S tariffs hitting Canada on Tuesday, Feb. 4.

Brian Sampson, owner of Sunshine and Ski as well as Track and Trail, said the real worry comes when they have to restock items.

He’s owned it since 1980 and said summer gear is covered for now because they already ordered it, but future shipments could cost more.

Since then, the store has provided jobs for him and his wife, along with their four children.

“This is our livelihood,” he said. “This is the staple of our income and our ability to connect with Regina.”

Sampson suggested shopping early to avoid extra costs when they go to restock.

GREG MORGAN:  Being a business owner, how do you feel about the tariff trade talk?

BRIAN SAMPSON: We’ve already placed all our orders for summer. That’s wakeboards, wake shapes, all the surf, all the running footwear and all our outdoor furniture. So we’re protected, I would say, from what my brokers are telling me, which also means the consumer is protected.

As for what are we doing for the fall? We’re in that buying cycle right now. Hannah has bought most of the clothing and accessories. Brandy is buying snowboards. Hannah and I buy ski and alpine in the next three weeks.

There are two areas. One, we are supported. A lot of us, suppliers are extremely nervous, because half of our purchases for next winter come out of the U.S.

And why they would want to penalize? I’m not sure and I’m not sure what they’re going to do with the pricing going into the U.S., then it comes out of us. So in other words, a product manufactured in Europe may get distributed through the U.S. and then back up to us. I have no idea how he is going to deal with this.

The other half of our industry buys directly from Europe, from Austria, from the Ukraine, from the interior of real Europe, at the heart of skiing so that is where that manufacturing is done.

So like cross country, I don’t think will be affected at all, but things that people don’t think about, where are boot buckles made? Where are certain items assembled? So they can say they’re made in the U.S., some of the parts come from other places, assembled in the U.S., saying they’re made in the U.S. and then shipped to us.

Our price lists right now have all gone up about 2 per cent — pre-tariffs — I don’t know if they’re hedging and we won’t know until I call at the end of February when the final price list comes out. I think it’s going to be new for lots of retailers.

Are the retailers on the other side of the border aware of what this means?

SAMPSON: No, we belong to the largest buying group in Canada, our national buying group and they’re extremely organized, so those discussions were strongly encouraged to us to get our orders in and pay your bills so you can get shipped properly.

What do I predict?

I saw it when the aluminum tariff came on on our outdoor furniture and it was awful. It was 8 per cent at wholesale and at that time, our dollar was 32 cents. It was not good and then it went away and it was noticeable.

I don’t want people to be alarmed. I want them to be aware and do your due diligence, do your investigations especially on some of your major items and including in our store, I’ll comfortably tell you that furniture will be good if it’s in stock.

If we have to reorder — it sounds like a tactic — but I don’t know what else advice to give.

Our philosophy at the store is always to do our best to protect the consumer and our margins so we can exist. That’s as truthful as I can be about it.

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That is awesome insight from a local retailer who should know to shop locally.

SAMPSON: We proved it at Christmas time. We reached out through your listeners, through my customers, new and old. It was overwhelming.

We had people driving 20 minutes from outside of Regina to up to an hour, almost two hours. It was crazy how many small community people drove to Regina to shop this year and I think there is an education that you guys have supported.

I think they’re enjoying a contact. I think they enjoy getting personal advice. It was noticeable.

Not very often, the retailers get to thank the consumers for responding, taking this moment, because it was noticeable all the new people that came from out of town through using CJME to help.