Groupon begins grocery discounts

Share this content:
Facebook acquisition makes big splash
Facebook acquisition makes big splash

Daily discount king Groupon, fresh off filing paperwork with the US Securities and Exchange Commission to hold an initial public offering (IPO), took its first step into grocery retail discounts last month. It launched its first deal with New England grocery store chain Big Y Foods, giving consumers 40% off a pre-packaged seafood purchase. The discount was integrated into Big Y's loyalty program. 

Jim Edwards,

From Groupon's point of view, it seems only logical that it should move into the heart of coupon land. On paper, its email delivery system is a lot cheaper than those operated by Valassis Communications et al. It is not burdened by their legacy analog costs. It's a reasonable notion that online companies like Groupon could do to supermarkets what online news sites did to newspapers. Groupon is extremely easy to use, and there are low switching costs for customers who want to stop clipping coupons and start using Groupon offers. 

Chunka Mui,

The pilot program will help test the efficacy of the Groupon ad model with large retailers, for whom multistore environments and easy integration with existing point-of-sale systems are big issues. Buyers of the pilot program will not redeem them using coupons. Redemption will be integrated with Big Y's loyalty program. 

Sarah Kessler,

Big Y, with its 61 stores, is the first multi-store grocer that the company has partnered with. It's also the first time that any retailer has integrated Groupon into its loyalty card program. As Groupon anticipates its IPO, and analysts' skepticism grows as they pick apart its filings, it's no surprise that the company is searching for new markets to apply to its group-buying model. The company also recently launched a travel deals service with Expedia, a local ticketing service with Live Nation Entertainment and a real-time deals platform. 

Anthony Ha,

Last week, some critics pointed out (justifiably) that even though Groupon's revenue is growing rapidly, its costs are skyrocketing too, suggesting that its business model may not be sustainable...Groupon has said that its vision isn't limited to daily deals, but rather involves a broader aim to "reshape local commerce." The more it can insinuate itself into every part of local business, the better positioned it will be to achieve that vision. Integrating with existing loyalty programs helps, and so does making it into grocery store aisles. 


Grocery retail chains may be the ultimate beneficiaries of this program, assuming that Groupon decides to expand it to other stores and regions. Groupon's brand cachet means that chains such as Big Y could attract new customers to their loyalty programs after only one deal. The program could also help Groupon, which has seen critics throw cold water on its financial disclosures in recent weeks, introduce itself at the local level to a range of new consumers. 


Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above