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Renewed Consumer Interest Drives Fourth Quarter Surge in Coupon Use

* Reuters is not responsible for the content in this press release.

Thu Mar 5, 2009 11:43am EST

Weak Economy, Attractive Offers Combine for Nearly 10% Increase Late in the Year
WINSTON-SALEM, N.C.--(Business Wire)--
Inmar, the nation`s leading promotions transaction settlement provider, today
announced that coupon redemption in the fourth quarter of 2008 grew nearly 10%
compared to the fourth quarter of 2007, the first jump in redemption since the
early 90s. 

Consumer response remained strong for the year with 2.6 billion coupons
redeemed, the third year in a row at that level. The weak economy was a major
factor in stopping the steady decline that coupon redemption had seen in the
years prior to 2006. The peak year for coupon redemption was 1992, at the end of
the last major recession, when 7.9 billion coupons were redeemed. 

"Consumers responded to the financial uncertainty, in part, by using more
coupons," said Bob Carter, president of Inmar CMS Promotion Services. "When
everyone started hearing reports of record unemployment, drops in consumer
confidence and losses on Wall Street, coupon redemption volume started to go
up." 

While the first three quarters of the year saw redemption dip slightly, coupon
redemption surged up by nearly 10% in the fourth quarter, compared to Q4 2007.
That increase came in November and December which both saw double digit
redemption growth. A double-digit increase in the use of food coupons primarily
drove the jump in redemption, although non-food coupon redemption also rose by
nearly 10%. 

The increase in use also accompanied an unprecedented shift in the channels in
which consumers used coupons. 

"For years, nearly 70% of coupons were redeemed in conventional supermarkets,"
said Jennifer Mauldin, President of Inmar Carolina Services Revenue Recovery
Services. "But in 2008, the mass merchandiser channel saw a 15% increase in
redemption overall, made up by a 20% increase in redemption for food coupons and
a 13% increase in non-food coupons." 

Coupons redeemed in mass merchandisers now account for nearly 19% of all coupons
redeemed while conventional supermarkets now account for less than 64% of coupon
redemption. 

Marketers continue to believe in the power of coupons, proven by a 5% increase
in the number of coupons made available to consumers last year. At 317 billion
coupons, distribution is not just up over the previous year, but is back up to
levels from a decade ago. 

"This high level of distribution, combined with a 9% increase in the average
face value and a generally sour economy, make coupon offers more attractive to
consumers than ever," said Carter. "The question is whether or not consumers
will continue to think so in the coming year." 

Entering the new year, consumers continue to show interest in a deal by
redeeming over 9% more coupons in January `09 than they did in January `08. 

"While we can`t predict the future, it is safe to say that the traditional
coupon is back in vogue for consumers," said Mauldin. "Even if the economy turns
a corner sooner than later, a combination of factors have put coupons back on
the radar of many consumers and introduced some to them for the first time." 

About Inmar. Inmar is a logistics company focused on enabling profitable,
seamless collaboration between trading partners by providing solution for the
physical, financial and information flows within the supply chain. Inmar is the
nation's largest and most comprehensive provider of promotions logistics and
settlement services. Inmar serves over 1,700 business clients, including
manufacturers, wholesalers and retailers, and processes more than 3.5 billion
transactions annually. Inmar CMS Promotion Services provides brand solutions for
all types of promotions at every stage of the promotion`s lifecycle. Inmar
Carolina Services Revenue Recovery Services processes coupons and manages third
party pharmacy claims for retailers. For more information, visit www.inmar.com. 



Inmar
Matthew Tilley, 336-631-2524
matthew.tilley@inmar.com

Copyright Business Wire 2009

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