Dallas, Texas 05/06/2014 (FINANCIALSTRENDS) – Groupon Inc. (NASDAQ:GRPN) is now looking to offer discounts to bulk purchasers while offering more than 100 health, hygiene and household products from reputed brands like Dove, Gillette and Burt’s Bees. The company is launching this service as Groupon Basics and is offering 5% back in Groupon Bucks for future use for all purchases made through the new channel.
The company mentioned that presently there are limited products (less than 110 items) available and on the way it will offer more options including grocery items. Moreover, the service will only available in the continental U.S. and the carts that billed over $25 will ship for free. The discounts will be in range of about 20% to 30% as compared to retails prices.
The Key Rivals:
Groupon Inc. (NASDAQ:GRPN)’s bulk segment venture with Groupon Basics division is expected to directly compete with retail giant Wal-Mart Stores, Inc. (NYSE:WMT)’sSam’s Club division as well as with membership warehouses company Costco Wholesale Corporation (NASDAQ:COST). Both of these competitors are believed to be the leaders in the bulk purchase segment. However, Groupon Basics offer an advantage as the services doesn’t require any joining or membership fees unlike both of its rivals.
However, it would also be of interest to see how Groupon takes its bulk purchase segment in future and what strategies it will employ as against traditionally employed by leaders like Wal-Mart and Costco. As far membership fee is considered, Costco regarded it as an integral part of its business model having considerable impact on its profitability.
Groupon Inc. (NASDAQ:GRPN)’s stock marginally gained 0.14% on Friday and closed at $7.09. The stock traded with a volume of 13.24 million shares against its 30 day average volume of 17.17 million shares. At its previous close the stock was 44.44% below its 52 week high of $12.76 and about 27.52% below its 200 day simple moving average.
This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.