CHICAGO — August Grocery, an independent retailer who specializes in selling seasonal fresh foods and produce for cooking meals at home, used Groupon to drive about 300 people to its 1,700-square-foot store in Wicker Park here last week.
Groupon, also based here, was launched in 2008 as part of The Point, an online website that leverages group action to make things happen. Groupon leverages the power of group buying to offer daily deals at deep discounts.
A minimum number of buyers must sign up for a deal before it activates, giving users an incentive to spread the word to friends via social media.
August Grocery’s Groupon deal on March 25 consisted of $25 worth of fresh groceries and culinary advice for a $12 Groupon. The deal resulted in 2,891 Groupons sold with 300 people cashing in during the first week after the deal was offered.
“I can't image any way I could get my name in front of 3,000 people in 14 hours and have the costs [of advertising] deferred over a year, George Djurovic, owner, August Grocery, told SN. He is waiting to see how many Groupon buyers will return to the store.
Groupon’s fee for the August Grocery daily deal is $6 for every Groupon redeemed. It is expected that 60% of the Groupons sold for August Grocery will be redeemed within the year, said Djurovic, who opened this specialized grocery store three years ago.
“Food retail discounts delivered by third parties like Groupon are going to explode in the next 12 months,” said Bill Bishop, chairman of Willard Bishop, Barrington, Ill. Groupon currently is in 42 cities nationwide and boasts 3.3 million subscribers.
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