Dollarmania!

In an uncertain economic climate, who wouldn’t like to see sales grow by 25 percent? That’s what happened last year in the third quarter at Tiffany & Co.’s New York flagship store. Its ’07 year-to-date sales came in even higher. Ironically, a relatively weak U.S. economy contributed to Tiffany’s success, as consumers visiting from other countries — a growing niche, thanks to a falling dollar — helped drive Tiffany’s gangbuster sales.

The dollar’s tumble (especially against the Euro) makes American goods almost half-off to European shoppers. Combine those numbers with cheap airfare, and you have a perfect recipe for “consumer tourism”: not especially affluent people coming to the States largely or entirely to shop. And we’re not talking about picking up a few souvenirs. FAO Schwarz notes that fully half of its traffic comes from outside the New York metropolitan area — and those travelers include about a third who are European. FAO forecast some four million visitors to its New York store in '07, up one million people from 2006.

While New York’s luxury shops are getting their fair share of destination shoppers, they’re certainly not alone. And it’s not just transatlantic travelers reaching for their wallets. This past fall, with the American dollar dipping below the Canadian for the first time in decades (before settling largely at par), consumer tourism has extended across the U.S., driven by shoppers who don’t need an airline ticket, just a tank of gas and an empty trunk.

According to The Christian Science Monitor, some 30 percent of Canadians indicated that they will buy from U.S. retailers, whether in person or online. Of course, the northern states have long been a shopping destination for Canadians. But retailers are now reporting a big increase in customers — along with a boom in abandoned clothes, according to Newsweek, as shoppers look to avoid paying duties on their purchases when they return home.

But it’s more than just the border states feeling the boom. At the outlet mall in Flemington, NJ, loudspeaker announcements are now repeated in French to welcome Quebecois shoppers. And though New Jersey is far from the border, Canadian license plates were found across the parking lots over Thanksgiving weekend.

What’s more, any retailer near a vacation destination, a concentration of retail or a hub airport is a candidate to attract foreign shoppers. The Associated Press cited Joanie McDonald, owner of the Jennifer Reale Design women’s fashion boutique in Delray Beach, FL, as seeing a major influx of tourist dollars.

And the Web means that every U.S.-based business with a URL and a UPS account has a chance to get in on the dollarmania. According to The Globe and Mail of Toronto, in October Canada Post saw a 15 percent increase in mail or parcels coming into Canada from the U.S.

While big brand names may be the main attraction for consumer tourists, there’s no reason gift and home retailers can’t seize the day while visiting shoppers are buying. Here are a few tips on how to get on their radar:

• Give the city, county or state tourist information bureau fliers or brochures to offer their clients, and list special events in their publications.
• Advertise where tourists are: Put your store handout in those racks of attractions that appear in hotel lobbies, airports, convention centers and other major tourist clearinghouses. Also, consider advertising in hotels’ in-room publications or even on in-room TV. (Tiffany & Co. advertises at the Four Seasons.)
• Team up with other retailers in your town, through a Local First alliance, Main Street Association or Chamber of Commerce, to split the cost of advertising your shopping district as a destination. Hosting a festival or other event is a good way to draw vacationing shoppers.
• Don’t be too proud to piggyback. If the main attraction for destination shoppers nearby is somewhere else — an outlet mall, for example — find a way to have a presence there, whether by partnering with a non-competing retailer to provide display props or door prizes, or simply post a teenager in a sandwich board outside to hand out fliers.
• Sell your strengths. Sometimes being located “off the beaten path”can be an advantage. Advertise short waiting times or individual customer attention — and make sure to have extra help on hand to deliver on those promises.

• Money matters. If you can, accept foreign currency at a reasonable exchange rate. If you can’t, make sure you know where customers can change currency locally. If customers are weighed down with bags, consider offering complimentary delivery to local hotels. “Every Tuesday we’re opening the stores at 7:30 and inviting the European guests to come in to shop so they don’t have to wait on the long lines,” says Nanette DiFalco, vice president of public relations for FAO Schwarz. “They can purchase duffel bags so they can buy product to take back with them and check it. We have people who speak multiple languages in the store. We also have an FAO Toymobile that can deliver the packages back to the hotel so they can go on and shop, because some of the items they choose may be bulky.” Saks Fifth Avenue increased its alterations staff by 14 percent, according to Marketwatch.com, helping visiting shoppers get their tailoring done before their departure date.

• Getting there is half the battle. If your area is considered a destination, consider offering bus trips to bring in Canadian shoppers — it works for Atlantic City. And consider advertising in the countries people are coming from. (Saks teamed up with American Airlines and the Times of London, and even threw a designer luncheon for a chartered flight of shoe-seekers. Macy’s has been working with hotels, concierges, tour operators and tourism bureaus in Philadelphia, Boston, Chicago and San Francisco, according to Marketwatch.com.) If parking is a problem, consider offering valet parking.

• Cast a Wider Web. Customers who wouldn’t dream of traveling to shop in another country can take advantage of their currency’s strength by ordering online from U.S.-based retailers. To maximize Web dollars, make sure websites are set up to accept addresses from other countries and convert currencies. Post international shipping charges (or a calculator) prominently on the home page so customers won’t fear last-minute unpleasant surprises during checkout.

• Speak the language. It may not be practical to have translation on hand for every single visitor, but retailers might want to consider having translated versions of their websites for at least one or two common languages, and hiring bilingual sales associates.

• Your “styleage” may vary. Despite growing globalization, fashion still varies from place to place. Keep a keen ear to what visiting customers say about the merchandise, and an eye on what they buy to find out what’s likely to translate well.

• Don’t forget to stock up on luggage so traveling customers can take their new purchases home even if they buy more than they planned.

The details may vary, but in essence selling to cross-border shoppers relies on the same strategies as selling to the hometown crowd: Combine quality product, high value, good service and fun to make sure customers feel like they’re visiting somewhere special, yet also right at home.