A hopeful post titled "UK retail sales rise more than expected in September" published in October 2013 states that "retail market research specialist Verdict on Monday forecast British retailers were set to enjoy their best growth in Christmas sales since the financial crisis.
The retail sector accounts for just under 6 percent of the British economy.
A first estimate of British gross domestic product in the third quarter is due to be released on Friday next week. Many economists expect growth picked up to around 0.8 or 0.9 percent from 0.7 percent in the second quarter." which further demonstrates my point on the retail economy being a key component to the recovery of the British financial status.
The BBC also wrote "Now it is true that the very high 143% current ratio of gross household debt to income is down from an eye-watering 169.9% peak in 2008, with the fall largely due to the impact of inflation on nominal wages.
Maybe, therefore, households on the margin feel a bit less financially stretched than they did."
An ironic article spoke of Groupon's success becoming it's own downfall as manufacturer's and businesses underestimated the success of their offers, resulting in an influx of business that was unmanageable and even potential loss.
"Rachel Brown, who runs the Need a Cake bakery in Reading, Berkshire, has said the 75pc discount she offered Groupon subscribers last spring on 12 cupcakes that usually cost £26 was “without doubt the worst ever business decision I have made”.She only expected a few hundred orders but under-estimated the deal’s popularity and, besieged by 8,500 people who signed up for the £6.50 bargain, ended up losing between £2.50 and £3 on each batch she sold.... Mr Tschotsch (joint director of Groupon) said Groupon now does much more to prepare merchants making offers through the company, in addition to carrying out credit and director checks."
[Source - Cave, A. (2012). Groupon ‘victim of its own success’. Available: http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/9192302/Groupon-victim-of-its-own-success.html. Last accessed 7th December 2013]
There's no doubt of groupon's success visible in nearly all corners of the virtual world when searching for coupons and discounts. Some people have even found their businesses success through Groupon. Here are some inspiring stories.
This one in particular is my personal favourite: "The last success story comes from the Elkhorn Inn in Eckman, West Virginia. What I learned from their experience is that business should e flexible with Groupon offers. The inn sold a total of 82 packages, 99 percent of which went to new clients. The inn told me their philosophy is “if they love us enough to buy three Groupons so they can keep coming back to the Elkhorn Inn & bring their friends, they deserve the discount!”Here’s the part about flexibility: The inn also chose to allow purchasers to use two Groupons simultaneously for two guest rooms, so they could come with their children or friends. When the Groupon purchasers call to book, the inn also has the chance to upsell the new customers on dinners at the Inn. They were prepared.[Source - McCue, TJ. (2011). 5 Groupon Success Stories And Discount-to-Loyalty Strategies. Available: https://www.openforum.com/articles/5-groupon-success-stories-and-discount-to-loyalty-strategies/. Last accessed 7th December 2013.]
Groupon may not be in the dictionary yet, but it sure is helping to define local business in this crazy economy. "
This helps towards my independent research for my app as I can learn from the errors of the discount apps that have come before. With the limited time and product offers there is little need to worry about over-orders as stores remain in full control of the amount of stock and amount of discount an individual gets. per customer, per day.
