In a huge shift to its business model and a push into the turf of RetailMeNot (SALE), Groupon (GRPN) has moved into the coupon arena.
Analysts say the decision may have a strong impact in the long run for Groupon and GRPN stock.
Groupon’s “freebies” will be links to the shopping site’s coupons and can be applied to the sale at the end of purchase (GRPN will get a percentage of that sale).
From USA Today:
Groupon launched with more than 25,000 coupons from over 5,500 brands and retailers in North America, including Target, Best Buy, Nordstrom and Macy’s. Next year, Groupon hopes to expand the business internationally and add in-store coupons.
“This could have meaningful potential over time,” said Sterne Agee analyst Arvind Bhatia.
The online coupon market is worth about $4 billion a year and when in-store coupons are included, the total addressable market increases to $28 billion, Bhatia noted, citing industry estimates.
“This gives people another reason to check Groupon first when they’re shopping,” said Rich Williams, senior vice president of global marketing at GRPN, to the newspaper.
GRPN stock is up 2% in morning trading and up 95% year to date.