Rising Cost of Living Drives Shoppers to Cashback Network
Keighley, England froggybank.co.uk, which operates a U.K. network of consumer loyalty cashback Web sites, has seen a record increase in business driven by the rising cost of living.
The company offers 100% of the commissions it receives back to consumers, allowing them to keep the money or donate to charities. Shoppers log onto a cashback site before making online purchases from major retailers as normal. The referral fee paid by more than 1,500 retailers to the Web site is returned to the shopper as cashback.
The rate of new members joining to get money off online purchases from the froggybank.co.uk network is up 64% in the last six months. The network now has more than 500,000 shoppers, but there has been a 40% increase in repeat visitors using the sites for smaller purchases than ever before.
Marketing manager Nadeem Azam said they are seeing many new shoppers claim cashback on relatively small purchases. “Traditionally when people first discover cashback shopping they use it to get money back from a large purchase such as insurance or a major electrical item,” Azam said. “But we are seeing an unusually high number of people registering, then immediately claiming cashback on small every day purchases such as entertainment items, or health and beauty products.”
“This trend is being driven by people having less money in their pocket because of the rising cost of fuel, food and other items. Cashback Web sites let people buy the goods they normally get at the prices they normally pay, with a little extra money back.”
NEW YORK InterActiveCorp, which owns HSN, said that it expects the spin-off of its Cornerstone Brands catalog business to result in an estimated $300 million in goodwill impairment and an operating loss in the first half of 2008, according to a Reuters report.
Cornerstone will become part of a new unit that will also include HSN under a restructuring plan to be completed by early August, the report said.
Charming Shoppes reports board changes
BENSALEM, Pa. Charming Shoppes announced that at its annual meeting of shareholders held today, shareholders re-elected Dorrit Bern, the company’s president and ceo, and Alan Rosskamm to the board of directors, and elected Arnaud Ajdler, Michael Appel, Richard Bennet III and Michael Goldstein as new directors to the company.