The National Groupon: Good for Business?

By Amanda Webster | Friday, August 20, 2010


For those of us who receive the "Daily Deal" emails from Groupon, part of the appeal is the focus on local business. I'm always thrilled to see a deal for something I've always wanted, but never knew existed just a few subway stops away.

Yesterday, however, Groupon offered its first national deal. For $25, you could get $50 worth of merch at Gap. And people responded. By noon, users were clicking "Buy" to the tune of 10 per second.

But was it really good for business? So, far, the jury's still out over whether the deal will have much impact for Gap. But, regardless of whether Groupon took its typical 50% cut (company policy prohibits them from disclosing the profit margins of the deal) it certainly threw them in the spotlight.

I doubt Groupon will stray too far from local business, but they will likely receive a boost in brand recognition and profits as a result of all the attention. Heck, I'm writing about them here, aren't I?

Some interesting articles:

eConsultancy: Groupon Goes National With Gap

TechCrunch: Groupon Launches National Deal With Gap, Selling 10 Groupons A Second

What do you think about Groupon going national?