How Resilient Coupons are Evolving
In the past few years, the world has experienced many changes and that were not unique to the coupon industry. What was once the “norm” has now changed. Various issues may be the root cause of these changes. However, like so many things in our world today, COVID comes into play.
During the time of COVID, people were not only concerned with their health and that of their families, but the many changes that would be occurring in the future as a result. They were reluctant to go to the grocery store, concerned about the tremendous out-of-stocks, and the increased cost of items that no longer were offering coupons.
The decline in newspaper readership resulting in the closing of many publishers has had a major impact on the FSI Industry. FSIs are largely dependent upon the newspaper Industry that has been shrinking at an alarming rate. During the dwindling of the newspaper readership, some FSI providers have attempted to send them out via direct mail. I believe this will continue and may be the mode of delivery for FSIs in the future. An interesting fact is other forms of paper coupons including IRC’s, tear-pads, direct mail, Consumer Affairs handouts, etc. have not only held their own, but have grown.
Digital coupons have also grown due to the retailer websites and member savings groups. We can expect even more growth when the new 8112 barcode coupons are in national distribution.
The new 8112 barcode and the entire Coupon Bureau platform has now been adopted and is in use nationwide at all CVS stores and over a thousand drug stores—both chain and independent—and grocery stores throughout the US and Puerto Rico. Beginning with Q2 ’25 and throughout the balance of this year more grocery chains, independent grocery stores, convenience store chains will be added.
But like almost everything, there are positives and negatives. Digital coupons are very popular with manufacturers, retailers and consumers. However, there is growing concern of the discriminatory impact on consumers who do not have access to digital coupons. This subject is being discussed in the coupon industry. Watch for updates and recommendations in future issues of CPGMatters.
Sandi Kleemann is President/CEO of Redemption Processing Representatives (RPR). For more information visit www.rpr-coupons.com
