Groupon Goes to the Grocery Store

Recently, Groupon launched an interesting new addition to its business model. In two select markets, Minneapolis and San Francisco, the coupon giant offered a coupon for $40 of General Mills products. It was snatched up quickly, as the 4500 available coupons were gone by the early afternoon. This is the first time that Groupon has offered something along these lines with a consumer packaged goods provider. Is this instance a mere trial run, or a sign of things to come?

First off, it is highly unlikely that Groupon would be able to consistently pair up with other supermarket giants unless they drastically change their business plan. Restaurants and other places can afford to pay Groupon’s premium in exchange for the huge boost in advertising and business that Groupon offers. Consumer goods are different though, and their profit margins and operating procedures would make it highly unlikely for any long-term arrangement to be reached.

That being said, if Groupon were able to offer such a service, I would be one of the first to jump on board. Groupon thrives in large part because they offer working arrangements with companies who offer services or packages that are not part of every-day life. Or if they do, it is with things that you need less often such as oil changes, inspections, etc. It would be very interesting to see if they could pull off something with a provider as large as General Mills. You more than likely buy cereal more than you get an oil-change. As a result, you would expect that their coupon sales would rise dramatically.

While I for one would love to see more offers like this, it may be a mere pipe-dream. What are your thoughts about super-market Groupon deals?

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  • Elene Corrieri

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