Rafi Mohammed

Bed Bath & Beyond's Persistent Coupons and the Return of Thrifty Consumers

Posted on October 6th, 2015 (0 Comments)

Bed Bath & Beyond is well – perhaps best – known for its ubiquitous 20% off coupons.  The chain of domestic merchandise retailer stores recently announced disappointing financial results. While revenue increased slightly, net profits dropped by 10%. So what’s the profit drain culprit? An “order of magnitude” increase in redemption rates, claims the company’s CFO!

While it’s easy to blame “those” coupons, my question is what would have happened to Bed Bath & Beyond’s profits if those coupons hadn’t been omnipresent. Please check out my latest article for the Harvard Business Review, which discusses the use of surgical strike discounts – a tactic that every company should incorporate into its overall pricing strategy.

For the latest pricing news and cutting edge strategies, please join me on Twitter: @cultureofprofit

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