As a variety of economic indicators improve, increased consumer spending could follow. Confident consumers are often more likely to make large and small purchases, and this plays a major role in businesses' success. But as they experience stronger sales, retailers need to take steps to ensure continued growth as they process more payments. In many cases, stores are working with many kinds of transactions, and retail and point of sale technology can address their needs to keep records up to date and accurate. Additionally, these tools may be crucial to businesses as they strive to avoid violations of Canadian retail legislation, which can stifle growth.
Dollar getting stronger
Canadian businesses have reason to be optimistic. According to Reuters, the value of the Canadian dollar was recently recorded at a one-month high versus the United States dollar. The Canadian currency was found to be at $1.0175 versus that of the U.S., which translates into slightly more than 98 U.S. cents.
According to the source, because economic conditions are currently improving in the U.S., this may be boosting Canadian indicators as well. The countries have a strong relationship when it comes to trade, and even in terms of factors like tourism, which can have significant benefits for retailers.
"The headline of durable goods orders is also somewhat constructive for risk sentiment and maybe by association has helped to provide the Canadian dollar with a little bit more ... positive momentum to start the day," said David Tulk, chief Canada macro strategist at TD Securities.
The Globe and Mail noted that improvements are unlikely to slow in the coming months. The period between mid-March and the end of May tends to be when the Canadian dollar is at its strongest. The source pointed out that in each of the past 20 of these time periods, value has jumped an average of 2 cents.
The source commented that the reasons behind this seasonal uptick are often related to trade. Usually, demand for Canadian exports increases during the second quarter.
In the best case scenario, improvements to the Canadian dollar's value will drive consumers to stores, empowered by the positive financial environment. Retailers can help meet their needs by implementing retail and point of sale technology to keep their businesses running smoothly.