Small Merchants ‘Bah Humbug’ Daily Deals
A RetailWire story back in July of 2011 looked at plans by consumers to use daily deal offers from companies such as Groupon, LivingSocial, etc. to save money on their holiday purchases. While the benefit for consumers was clear, it was less certain that the same applied to the merchants behind the deals.
Doug Fleener, president and managing partner, Dynamic Experiences Group and a RetailWire BrainTrust member, observed, "I guess commoditizing gift giving is just a natural extension of commoditizing retail and restaurants. It’s like saying I love you … well actually I love you half-off."
Now comes a report that small retailers have decided to take a pass on offering Groupons this holiday season as they cite a lack of return on investment.
According to a survey by Manta released last month, only three percent of retailers said they got repeat customers out of daily deal promotions.
"They’re doubling down on things that work, and leaving things that are less proven or they’ve had experience with and didn’t work off to the side," Pamela Springer, CEO of Manta, told USA Today.
- Daily Deals for the Holidays – RetailWire
- Small business not keen on Groupon for holidays – USA Today
Is there a place in the daily deal space for special offers that satisfy customers while making business sense for merchants? What do you think is the future of daily deal companies such as Groupon, LivingSocial, etc.?