retail news in context, analysis with attitude

Coupon redemption in 2010 held steady compared to 2009, according to a new report by Inmar, a solutions provider specializing in software services and operations, which is an improvement over the stagnant and/or declining performance that coupons showed for years until the end of 2008.

The report says that “food coupon redemptions, which represent 65 percent of all coupons redeemed, increased by 3 percent in 2010.  Non-food coupon redemptions (the remaining 35 percent of all coupons redeemed) decreased by 5 percent, for a net change of zero percent for the full year. The decrease in non-food coupon redemption tracks with non-food product sales which were down for the year according to data from Nielsen.”

The study also says that “marketers continued to invest in coupons in 2010 with overall distribution up 8.1 percent.  Distribution via Free-standing Inserts (FSIs) increased by 7.1 percent, and accounted for 78 percent of the overall increase in distribution. Most of the redemption growth occurred in other methods, particularly in-store methods such as instant redeemable and shelf pad coupons, which increased by 44 percent and 27 percent respectively, compared to the 10% decline in FSI redemption.”
KC's View:
I continue to believe that this while industry is going to have to change, and that the companies who want the biggest bang for their buck out of a coupon drop are going to have to be a lot more focused, and lot more targeted.