Inmar Intelligence | May 6, 2020

Grocery Digital Coupon Programs and Saving Opportunities Become More Important than Ever Amid Coronavirus Pandemic and Looming Recession 

Digital coupon redemption in March increased 56.5 percent year over year; provides growing opportunity for retailers and CPGs to meet desire for savings and strengthen loyalty among consumers

The COVID-19 pandemic has dramatically changed the way that consumers shop and purchase goods, especially food as grocery is one of the limited areas that continues to be essential. In light of the critical impact of the pandemic, consumers are signaling a continued demand for digital savings opportunities, opening the door for retailers and CPGs to increase their offerings. 

Inmar Intelligence, a data-driven technology-enabled services company, found that enrollment in digital coupon programs across the top 30 percent of national grocery chains has grown 93 percent year-over-year since March 1. Additionally, digital coupon redemption in March increased 56.5 percent industry-wide year over year. According to eMarketer, more than six in 10 U.S. adults will be digital coupon users this year. 

“Reduced store visits and larger order quantities have led to supply shortages that have increased consumers’ willingness to try new brands and new categories,” said Charlie Gage, Director of Business Intelligence at Inmar Intelligence. “Now is not the time for CPGs and food retailers to back away from promotional activity. In fact, there is an even greater need to provide savings options for consumers to have them keep coming back for their essential items. It is important for retailers and CPGs to engage with shoppers and meet their demands for savings and digital solutions. 

As the “new normal” becomes something different than what consumers are accustomed to, what remains unchanged is the need for proactivity in promotions and engagement. In fact, Inmar Intelligence has found that during the Great Recession, all coupon redemption increased 15.2 percent from 2008 to 2009 and 6.3 percent from 2009 to 2010 as consumers used price incentives to stretch their personal budgets.

“ The pandemic has driven more consumers online for everyday shopping than ever before, this includes planning their budget and seeking savings,” said David Mounts, Chairman and CEO of Inmar Intelligence. “Consumers are extremely concerned with their financial well-being, especially heading into the fall, and are paying close attention to every dollar spent. They are taking every opportunity to save as much as possible, and the digital coupon programs provide an opportunity for those consumers with different price elasticities. At Inmar, we are committed to ensuring that consumers receive the savings they need and that there is a constant flow of consumer-valued offers from retailers and manufacturers.”

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