Cnn On Coupon Clipping Rise April 09


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Cnn On Coupon Clipping Rise April 09

  1. 1. Recession Promotes Coupon Usage... nomic shock gives rise to coupon cutting - It’s Headline News! Reports... Powered by Economic shock give rise to Coupon Cutting SAVE THIS | EMAIL THIS | Close (CNN) -- The rising price of company’s 40-year history. Strickhouser said. consumer goods is driving Economic shock gives rise to coupon cutting shoppers from all walks of life to “People might say coupons are Strickhouser said specific figures use Story Highlights for food, beauty necessities related to usage is proprietary coupons just for tightwads, but people Shoppers are turning to coupons for deals on luxuries and services such as products atup 153dining in 2008 and pharmacypercent more coupons for casual percent from all kinds of economic information and unavailable for users print 198 Use of coupons for oil changes, dry-cleaning an increasing rate,upaccording backgrounds are more likely to release, but said the number quot;Couponingquot; at big box retailers 14 percent, even as restrictions increase to some of the country’s largest use them,” Strickhouser said. “It’s represents a significant surge By Emanuella Grinberg purveyors of manufacturers’ good sense to use them.” in consumer response in the CNN coupons.price of consumer of the country's largest purveyors of manufacturers' coupons. for food, beauty aids and pharmacy products at (CNN) -- The rising goods is driving shoppers from all walks of life to use coupons an increasing rate, according to some Consumers from several In mid-2006, consumers erall economic backgrounds are bucked a 15-year period The once-popular act of coupon cutting -- introduced by the inventor of Coca-Cola syrup more than 100 years ago -- is again becoming a household s ov chore. user se clipping coupons.less, they aren't necessarily cutting back on necessities or luxuries. Instead, consumers are hunting for deals of decline by redeeming on s coup t they u e brand While people may be looking to spend 2.6 billion manufacturers’ of on where to dry-clean their clothes, get their oil changed or take the family out to dinner, said MaryAnn Rivers, CEO of Entertainment Publications, 88% tha h y...and a 198 percenton t in the which publishes community-based coupon books and Web sites. Consumers from coupons. ey increase sa mon several for casual or quot;quick-servequot; meals since last year. Rivers said the company's site has seen a 153 percent increase in the use of coupons for day-to-day necessities s ve economic has slowed down, they're just looking to save more often,quot; said Rivers,twhosea ly buy! sold in schools and k up” on use of coupons ns o publication is activities “I think that what we’re oThey are trading down fromoften and moving into more l “stoc backgroundsa fundraising tool. quot;We're getting back to basics withup ey usua quot;It doesn't appear activity co people. seeing is a behavioral to community organizations as th arecompanies are also seeing gains. Florida-based Valpak, whose signature bluetenvelopes land in about 45 millionthomesm year, hasy! e he eachy bu seen affordable opportunities.quot; tha clipping change in the consumer y us products ll a use of its coupons increase 8 percent since last year for products such as groceries, take-out food, theimprovement usu and specialty retail. Other coupons. that could have lasting say they home 47% quot;Coupons motivate customers when they're looking at different stores that offer the same goods. They're s effects. If you shift nd more likely to go with a storew offers bra that e try n The once- buying patterns and coupons,quot; Valpak spokeswoman Marsha Strickhouser said. to popular specific figures related to usage is proprietary information and unavailable for release,hemthe number represents a significant Strickhouser said act of enjoy benefits of t but said use s! 47% uctlikely to use them,quot; Strickhousertsaid. surge in consumer response in the company's 40-year history. coupon cutting doing that, you will ’s prod tha ! rand or them -- introduced likely continue in that quot;People might say coupons are just for tightwads, but people from all kinds of economic backgrounds are more b by theconsumers bucked a 15-year period of decline by redeeming 2.6 billion manufacturers' coupons. try a nsive” f quot;It's good sense to use them.quot; In mid-2006, inventor pattern,” he said. to of Coca-Cola remained consistent, with redemption at mass merchandisingtstores m oo expeTarget up 11 percent since e se h y t as Wal-Mart and “For the marketer, u fa 41% syrup more thanco-chair of the Promotion Marketing Association's Coupon all ore o Since then, the numbers have such it’s an opportunities su Council. “u 2007, according to Charles Brown, y m of ould 100 years ago also has risen in dollar stores and convenience marts by 14 percent since last to buas the usewcoupons as a quot;Couponing,quot; as Brown calls it, -- is to bring in more year, even ey m e the t than th again becoming a customers and get marketing tool has declined in the packaged goods arena. us 29% duc household chore. them to try new on pro sed d ba ,000 h an an 2 things.” Marc ll d in f more th . The fu ductervey o10/10/08 8:44 AM y! site f2 con ons y bu was ustom su le coup While people may be lse,” all b c er Pu s and a m printa norm nsum on o looking to spend less, Links referenced within this article: n Co Simm oupons.c oupo from eC ble C arch ns th National Economy - Printamer rese Inc. ow . they aren’t necessarily 8 “200 consu ns, om oupoponsinc.c e Economy y, th tional rs. C stud The piled na pon use at cou cutting back on Entertainment Publications Inc. - le com ble cou loadab n printa is dow necessities or luxuries. ics/Entertainment_Publications_Inc rt repo Instead, consumers Recession drives consumers are hunting for deals on where to dry-clean their clothes, to Coupons for Savings get their oil changed or take the family out to dinner, said MaryAnn Rivers, CEO of Entertainment In a rough economy, frugal shoppers third-most-popular strategy. Publications. are turning to coupons. comScore’s “State of the US Online Retail In an October 2008 survey of 2,000 “Coupons motivate customers Economy: Q3 2008” report said that female Internet users ages 18 when they’re looking at different 62% of responding US consumers and older by SheSpeaks, 76% of stores that offer the same goods. who were decreasing their shopping respondents reported sharing offline They’re more likely to go with expenses in October 2008 were using coupons found in magazines, direct a store that offers coupons,” coupons more often to do so—the mail or newspapers with their friends. Excerpts from eMarketer Inc. 2009 Valpak spokeswoman Marsha
  2. 2. As Times Get Tougher, Consumers Turn to Coupons Associated Press Martinez does even better on health and beauty items at two major drug chains, CVS and Walgreen, Published: March 16, 2009 12:54 PM ET bringing her monthly average overall savings close to 70 percent. On Jan. 10, a receipt showed that she paid just $1.05 for $45.45 worth of goods at Walgreens, having combined store coupons providing credits FORT WORTH, Texas Gwen Martinez is buying more for the entire price of an item with coupons groceries and health and beauty products than ever clipped from the newspaper for the same before — but spending less. Like a growing number product. of Americans in this economic downturn, 29-year- ! old Martinez is a relatively recent convert to clipping ox ur S The savings allow her to spend more on coupons from newspapers and in-store circulars and EE in n food and healthcare goods than before, and finding them online. ilb to pay down some credit card bills. po Yo g “I am saving about 69 percent overall,” said the Stephanie Nelson of Arlington, Texas, medical secretary, who began in Ma claims that a family of four can save $100 August after a fellow customer at a Walgreens checkout a week on groceries by clipping coupons. gave the cashier a handful of coupons, immediately Sa Cou Since 75 percent of grocery coupons saving her $10. come from the Sunday newspaper, she recommends buying two or three copies to Martinez was hooked, and she’s far from alone. save dramatically, then scan the Internet “Coupon clipping is for more. And some manufacturers are sweetening the deal. ed v definitely up,” said Mark Adamcik, 45, to Last year, multiple-purchase requirements an Albertsons store manager who’s worked more than on health and beauty coupons dropped to 6 two decades for the chain and its predecessor, Skaggs. percent, from 11 percent in 2007. Moreover, expiration dates were lengthened, the FR “As the economy tightens average period rising to 2.8 months from 2.6 months, said NCH’s Brown. But the up, it makes coupons opposite was true for grocery coupons, which saw expiration dates reduced to 2.3 more appealing.” months in 2008 from 2.4 the year before. er Multiple-purchase requirements decreased, but only by a tad, to 35 from 37 percent. liv Coupon use rose 15 The average value of De percent in the last three a coupon distributed months of 2008, compared with today is $1.29, the same period of 2007, said Charlie Brown, vice president of marketing at NCH, the redemption unit NCH’s Brown said. of Livonia, Mich.-based Valassis, which invented the Sunday newspaper coupon sections and owns Red in Coupon use and private-label purchases Plum, one of two big coupon companies. And tend to rise during tougher economic times a typical year, Americans many people because redeem $3 billion worth look for ways to of coupons, with fewer and fewer finding save money, said Larson, themselves too embarrassed to pull out wads of adding that consumers might also have coupons or lug in baseball card albums choked with more time on their hands to clip and sort. coupons for breakfast cereal and canned soup. Larson rattled off the grocery coupon’s various effects: They draw attention to a “There’s less negative stigma attached to coupon use product, lower its price for past buyers and during slower economic times,” said Ron Larson, a attract new ones, generate consumer “pull” marketing professor at Haworth College of Business at during soft sales periods, remind even Western Michigan University in Kalamazoo. nonclippers of the product’s existence, create a marketing synergy benefit when Nearly coupled with in-store specials, and they limit A recent survey bears that out. growth of private-label competitors. Despite 57 percent of 3,013 the manufacturers’ desire to snare a steady buyer with a coupon offer, Martinez says she no longer becomes loyal to a particular brand. “I’m a sale kind of girl,” she said. Her grocery cart included a mix consumers surveyed nationwide in December of national and private-label brands, including a loaf of Albertsons budget Good Day sandwich loaf. The Minnesota-born Martinez alternates between Kroger and Albertsons, depending on the weekly specials. admitted that they were once self-conscious Both are convenient on her commuting route. And both double and triple the value of many coupons. Typically, the big-box discounters like Wal-Mart and Target discount only the face value. about handing over grocery coupons but no Although some coupons carry fine print saying they cannot be combined with other offers, she learned longer care because of the money they’re saving, from Internet couponing forums that most stores don’t mind. On Thursday, Albertsons staff said they had no objection if the computerized scanning system accepted them. “Cheese was a really good deal,” according to a study by ICOM Information & Communications, a provider of marketing data. Twenty-two Martinez said. Combining offers allowed her to apply an in-store flier coupon putting a $5 sale price on percent said they were still uncomfortable using the coupons. three 8-ounce packages of Kraft-brand cheese along with a newspaper coupon and another won in an online contest. The combination reduced her cost to 50 cents apiece. The usual retail price of an 8-ounce Forty-three percent said they’ve used coupons packet at Albertsons is $2.50. While few supermarkets make much, if anything, on savvy coupon users like Martinez, she wouldn’t be there without the tiny slips of paper. Before August, most of her groceries more in the past six months, it said. were purchased at Sam’s Club. “But I stopped after I began couponing, and find I get better deals at supermarkets with coupons,” said Martinez, noting that coupons don’t help much in the large bulk quantities at a wholesale club store like Sam’s. Manufacturers of brand-name food products, under pressure from supermarket chains’ cheaper private- label items, bought about 5 percent more coupons in the fourth quarter of 2008 to promote their goods at “It was my most a time when cost-conscious American families are eating more home-prepared meals, said Suzie Brown “Frankly, I used to hate grocery shopping,” she went on. (no relation to the NCH executive), chief of marketing at Valassis. dreaded chore until I started coupon-clipping. On a recent Thursday evening, Martinez entered an Albertsons in Hurst, Texas, with a shoebox-sized, purple plastic box containing more than a thousand coupons sorted by category, and picked up the weekly “Now it’s an adventure store circular with a front-page of more coupons. Less than 30 minutes later she wheeled her cart toward cashier Cinda Atkins’ checkout lane with $103.08 worth of groceries. After her coupons were scanned, Martinez said, “This is my favorite part.” Atkins calls out that the cost was reduced to $61.49 — a savings and a challenge.” of $41.59 or slightly more than 40 percent. The customer next in line, who waited patiently as 40 coupons were scanned, shook his head in amazement.