Independent Grocer Snags Shoppers With Group Coupon Deal

Food retail discounts delivered by third parties are projected to increase dramatically within the next year.

April 06, 2010

CHICAGO - A small, independent grocer in Chicago??s Wicker Park neighborhood is leveraging the popularity of Groupon to generate brand awareness and sales for its 1,700-square foot store, reports Supermarket News.

Groupon, an online Web site that leverages group buying action, offers daily deals that provide significant discounts for consumers. August Grocer partnered with Groupon last month in offering $25 worth of groceries and culinary ad vice for a $12 Groupon, an offer that resulted in nearly 3,000 Groupons sold during the day it was offered.

"I can??t imagine any way I could get my name in front of 3,000 people in 14 hours and have the costs [of advertising] deferred over a year," said George Djurovic, owner of August Grocery. He said 300 people redeemed the coupon during the first week after the deal was offered, and he expects 60% to be redeemed within the year. It will pay Groupon $6 for each coupon that is eventually redeemed.

"Food retail discounts delivered by third parties like Groupon are going to explode in the next 12 months," said Bill Bishop, chairman of Willard Bishop. Groupon currently is in 42 cities nationwide and tallies more than 3 million subscribers.

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