Centennial Comeback — Over 100 Years of Coupon Savings
CHARLOTTE, N.C.-(Business Wire)-September 1, 2009 - It should come as no surprise that the recession has spurred use of one of the most venerable money-saving devices: the coupon. Offered in the U.S. since at least 1909, the coupon came into its own during the Great Depression, and now, in the throes of the “Great Recession,” coupon redemption numbers are soaring as the category marks over 100 years of use and September begins National Coupon Month. Redemptions of coupons from consumer packaged goods companies alone leapt 17 percent in the fourth quarter of 2008 over Q4 2007, and increased 14 percent year-over-year in the first quarter of 2009 (1).
The increases reverse a 15-year trend of declining redemption figures. “Coupon usage always goes up when the economy goes down, and then declines when times improve,” notes Sok Verdery, CEO of CouponShack.com. “The difference this time is that all the predictions are for a long, slow recovery, which suggests that demand for coupons will remain strong for the foreseeable future.” As just one example, he points to increased redemption rate of coupons for personal care and household items. “People are feeling the pinch from the recession and are doing all they can to find ways to save money,” he says.
There is precedent for such a change in consumer attitudes: the Great Depression. Though (so far) the current recession hasn’t plumbed the depths of the early 1930s, when unemployment hit a high of 29 percent nationwide, there’s no doubting that the country is in the midst of the worst economic storm in a generation. Many of those who went through the Great Depression learned frugal habits – among them, clipping coupons – that remained with them for the rest of their lives. The current downturn is not expected to bottom out until late this year at the earliest, and experts say consumers won’t notice any uptick until mid- to late 2010. (2) That means Americans will spend at least two years in a recessionary mindset, increasing the chances it will have a lasting impact on behavior.
Radical changes are already apparent. Not only are people using more coupons today, but they are also using them at a wider variety of retail outlets. Historically, supermarkets have accounted for about 70 percent of coupon redemptions, but last year that figure plunged to less than 64 percent as other channels, particularly mass merchandisers like Wal-Mart and Kmart, saw big hikes in the number of coupons being used at their stores. (3)
“Not that long ago, coupons were mostly seen in just a few categories like grocery and clothes,” said Verdery. “But these days people are scrambling to save on every purchase and, as a result, retailers and suppliers of all stripes are offering deals. Top Categories for CouponShack.com include software, healthcare products and travel.”
Fortunately for bargain hunters, the internet is providing a whole new way for consumers to find savings. It was this new virtual reality that drove the development of CouponShack.com in 2003. “The idea was to create one place people could go to find all the latest discounts, and the lowest possible prices, on everything,” Verdery says. “Our site this month is introducing a whole new look with new savings features, social media, a commenting & rating system, widgets, historical use data, and more for our customers. As we say – Shack before you shop and you’ll save.”
(1) NCH Marketing press release 3/11/09 and 6/30/09
(2) BNA survey 7/2/09
(3) Inmar press release, 3/4/09
 |
 |
 |
|
||
 |
|
 |
|
||
Search Our News Using Google Search
Can't find what you want? Try using Google:
