Kroger Launches Digital Coupon Center, Simplifies Digital Savings

Grocery store chain aggregates digital savings.

August 12, 2010

NEW YORK - Kroger Co. is leveraging the popularity of its three-year old digital coupon program, launching a new service for consumers that centralizes more than 100 coupons for private label and name-brand items, Brandweek reports.

Previously, consumers conducted online searches for digital coupons that they then loaded onto store rewards cards. But with Kroger's Digital Coupon Center, shepherded by YOU Technology, a central digital clearinghouse is now available for consumers.

"Rather than going to a bunch of sites looking for content, [the site] pulls it all together and gives the best offers available," said Ken Fenyo, YOU Technology's CEO. "It's a way to deliver more value and convenience to the consumer."

Digital couponing has become big business for retailers, with redemption rates €" as high as 40 percent, according to some retailers €" considerably higher than with traditional print coupons.

Overall, digital couponing increased 84 percent in the first half of this year compared to the same period in 2009. As such, analysts expect other retailers to follow Kroger's lead in aggregating digital savings.

"Kroger seems to try new technology and innovate early," said Rita Wheat, director of digital strategy and research at G2 USA. "And this program makes sense because every retailer is trying to create a more personalized experience, drive store loyalty and stand out."

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