Report: Coupon distribution continues to grow
Livonia, Mich. A report released Wednesday by media and marketing service Valassis found that coupon distribution and redemption in the first half of 2010 continue to build on the record-breaking growth trends of the past year. In total, consumers saved nearly $2 billion with coupons in the first half of 2010, a 37% increase over pre-recession levels.
The report said that marketers offered 18 billion more consumer packages goods coupons in the first half of 2010, up 11.4% from a year ago and 24.8% from mid-year 2008.
These findings were revealed as part of the mid-year 2010 CPG Coupon Facts Report, released by NCH Marketing Services, a Valassis company.
Overall redemption volume has increased 7.9% year-to-date, with a higher growth rate (+12%) coming from the health and beauty care segment in 2010, according report findings. The sustained growth in coupon redemption volume produced the seventh consecutive quarter of year-over-year increased usage. HBC marketers also increased their use of coupons at the fastest pace, up 20.8% from a year ago, compared with 6.7% for the grocery segment.
“Marketers have increased their promotional activity as consumers have embraced mindsets toward value and are defining what has been called the ‘new normal’ when it comes to these learned shopping behaviors,” said Suzie Brown, Valassis CMO. “Consumers are adjusting their spending and becoming more strategic in their purchases as deal seeking escalates. Today’s shoppers don’t leave the house without their coupons and they don’t seek savings in just one place or from one media source.”
Among retailers, the largest increase in redemption volume so far this year has been in convenience stores, warehouse clubs and discount variety chains, such as dollar stores. Redemption across those store types as a whole is up 36.6%.
Borders closes sale of Paperchase
ANN ARBOR, Mich. Borders Group announced it has closed on the previously announced transaction to sell Paperchase Products Limited to Primary Capital Limited, a U.K.-based private equity firm, for approximately $31 million USD.
On July 13, Borders announced it would sell Paperchase.Under the agreement, Borders Group said it will continue to purchase and carry products designed and sourced by Paperchase in its U.S. stores.
The company will receive proceeds of approximately $31 million (USD based on current exchange rates) upon closing, which is expected within the next week. The company is required to use $25 million of the proceeds to reduce the amount outstanding under its $90 million term loan credit facility. The completion of the sale is subject to customary closing conditions.
“We’re excited by the opportunity to build on the success of Paperchase, which is a well known design-led stationery brand in the United Kingdom, whose products have received great visibility through Borders stores in the United States,” said Graham Heddle, a director of primary Capital. “We look forward to working with the Paperchase team to build the business over the next few years.”
Borders Group acquired a majority interest in Paperchase in 2004.
Ebay’s revenue up in Q2
SAN JOSE, Calif. Ebay reported that revenue for the fiscal second quarter ended June 30, increased 6% to $2.2 billion, or 15% excluding Skype, compared with the same period of 2009. The company recorded second-quarter net income on a GAAP basis of $412.2 million, or 31 cents per diluted share, and non-GAAP net income of $530.2 million, or 40 cents per diluted share, representing an 18% increase excluding Skype, compared to the same period of 2009.
“We delivered strong second quarter results, demonstrating the global strength and increasing diversity of our business,” said John Donahoe, Ebay president and CEO. “PayPal is strong and getting stronger, building a robust and innovative global footprint serving all of ecommerce. And our Ebay turnaround remains on track, with strong performance in Europe, significant changes in the United States and continued improvements to the buying and selling experience. We continue to focus on delivering strong financial results, managing a healthy balance sheet and making the necessary investments to compete, win and satisfy our customers.”