Transcript
A (0:00)
Kroger has brought back paper coupons. According to the Street, Kroger has gone back to handing out coupon flyers while also offering digital deals. The new paper coupons are released in stores on Wednesdays via a single sheet that includes all their digital coupons and specials with a single barcode. Customers can simply grab a flyer and scan it at the self checkout or ask for help from one of our friendly clerks. Kroger said. Joanna, please make sense of this for me. Do you agree with Kroger's decision to bring back paper coupons?
B (0:32)
I do. I do agree.
A (0:34)
I do.
B (0:37)
From Chris or it is. It is. I do. I think this is less about paper making a comeback and more about Kroger recognizing, you know, the idea that a discount and a deal just, just feels more valuable when you can touch it. You know, there's a, there's an element of that look, you know, 90% of U.S. customers say they want discounts. 40% prefer paper coupons because they feel real intangible. So there are some folks, you know, behind this movement. Although Kroger does have a very significant loyalty program. I think they have about 90 million households signed up. Just because you're part of that does not mean that that those digital coupons that you have access to are driving your shopping planning and the, and the paper planning and the ability to see that is still a very big part of the shopping map and in a very competitive market where value is really driving the intention. I'm going to go to stop and shop for my meat. I'm going to then go to shop right for my eggs. I'm going to round it out at Wegmans for my produce. You know, I need to know the deal exists and if I don't because it's only digital, then you risk not even having me in the store in the first place, making a stop there. So I think this makes a lot of sense. It seems like a no brainer to Kroger. It's minimal cost to them to print these. The promotions are through the manufacturer. So there shouldn't be incremental funding that they're having to put behind it. They're going to make the same margin on this and it demonstrates they're listening. You know, we've, we're seeing, just listening to the customers and we've seen it more on the restaurant side recently. Right. But whether it's the cracker barrel logo or Starbucks announcing the Apple Crisp comeback at the end of the month, you know, brands are listening. When consumers feel like there's a diminished experience for them, and that's what Kroger seems to be doing. So I don't think it's a strategy backpedal, maybe a little of nostalgia, but I think it's just. It's just wise business.
A (2:38)
Joanna, do you think that they should be getting anything exchange? I think that's my rub here. Like, there's no loyalty card scan. Like, why couldn't they do this with a loyalty card? Like, so that they have some way to track this. Because I know it's not a huge investment to print all of this, but it is an investment in the time it costs to still shoot that, to print it to, you know, and. And the sustainability component that, you know, a lot of these retailers have goals that they're supposed to be trying to hit to eliminate paper waste, like creating. Could they listen to their customers and get, like, the benefit out of this in another way? Like, it's still a single barcode. What are your thoughts on that?