Fast Five Shorts | San Diego Bans Digital-Only Coupons
In the latest edition of Omni Talk’s Retail Fast Five sponsored by the A&M Consumer and Retail Group, Mirakl, Simbe, Infios, ClearDemand, and Ocampo Capital Chris Walton and Anne Mezzenga discuss: San Diego Banning Digital-Only Coupons
For the full episode head here: https://youtu.be/xZ2R3c0ZxsU
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00:00 - Untitled
00:11 - San Diego's Grocery Coupon Ordinance
00:38 - Digital Inequality and Community Engagement
01:43 - The Evolution of Grocery Loyalty Programs
03:04 - The Impact of Technology on Consumers
03:58 - The Evolution of Retail Loyalty Programs
04:15 - A New Perspective on the Discussion
San Diego has banned digital only store grocery store coupons, according to Grocery Drive, also said grocery dive.
Speaker AThe City Council for San Diego, California unanimously passed an ordinance requiring grocers that offer digital discounts or coupons to make corresponding paper coupons and pricing of identical value available to consumers.
Speaker AWhoa.
Speaker AThe policy in San Diego is reportedly the first of its kind in the U.S.
Speaker Ain San Diego, according to the city, 53,000 households don't have home Internet.
Speaker AAnd in low income areas or vulnerable communities, over 28% of the households don't have broadband Internet access as well.
Speaker AAnd this is also the put you on the spot question from our folks at the A and M consumer and retail group.
Speaker AAnd they want to know, quote, do you applaud Ron Burgundy's hometown's attempt for promotional equality or critique the means or perhaps both?
Speaker BSan Diego, I think you're going, I think you're going the entire wrong route with paper coupons.
Speaker BI think this is just.
Speaker BYou do, it's not the right way to go.
Speaker BI think, like I just mentioned, disenfranchise the 53,000 people.
Speaker BNo, no, no, I do not want to do that.
Speaker BI.
Speaker BBut I think like I mentioned in the Instacart story, winning in grocery right now is 100% about loyalty.
Speaker BAnd it's again, it's going to become even more so as tariffs come into place as, you know, food prices go up.
Speaker BSo I think if I were a grocer right now, I would take a hard look at my loyalty program and just apply these discounts to everyone with a loyalty card.
Speaker BGo the way of, you know, Walmart plus, of Target Circle, where if you just scrap, scan the barcode, whether that's, you know, your physical barcode that you have on a card or you're doing that in a digital form, put your.
Speaker APhone number in at the cash register.
Speaker BOr whatever, you get the discounts.
Speaker BBecause I think it's more valuable for me as a, in the long run as a grocery store owner to have that information about my customers and to use that for other things like, you know, retail media or better more personalized promotions or things like that than it is for me to go through the expense of producing a circular or having myself be at risk of like, not putting all the right coupons out in time or relying on store labor to put signs up, that kind of thing.
Speaker BLike, I just think you have to focus on being the best price leader, the most personalized shopping experience for your consumers.
Speaker BAnd that comes down to like, focusing hard here on loyalty and not dealing like Paper coupons, man.
Speaker BIt's just a back.
Speaker BIt's, it's going back in time and not taking the right approach.
Speaker BI, I think that's absolutely the, the wrong, wrong move here.
Speaker AYeah, you're right.
Speaker AAnd, and the other thing too is like, God, how many bullets are lined up against the average grocer, you know, like how many bullets are in the chamber just making their job just harder, you know, for sure, at the same time.
Speaker ARight.
Speaker AYou know, you know, right.
Speaker ALike disenfranchisement is real.
Speaker AAnd it's partly why, you know, we, at least for me, like I got, I got into this whole business that we've been in for the past eight years, is to speak out about technology's impact on the end consumer and to make sure it's being utilized in the right way.
Speaker ASo.
Speaker ABut I think the point you're making is really interesting here because the counter is also true, actually, when I think about it broadly in the industry.
Speaker ASo, you know, if, if you're.
Speaker AAs if your store effort couponing is also not.
Speaker AAnd discounting is also not transparent, it doesn't play well in the opposite space in the online space.
Speaker AAnd I think of Kohl's as an example for that.
Speaker ASo, so in a world where the two things are blending stores and online, you know, from an omnichannel perspective, which is what our show's about, I think you're right.
Speaker AIt does make sense for retailers to be.
Speaker AAnd it would be wise for them to get one simplified, easy to understand loyalty promise with their shoppers however they want to do that.
Speaker AThere's lots of ways to do that.
Speaker ABut I think you're right.
Speaker AThat's what this story tells me.
Speaker AFirst and foremost as a retail executive, if I'm sitting in the chair, is like, we have to get our loyalty program moving in that direction so that regardless of how people want to shop, we're not encumbered by the legacy infrastructural needs that are going to bring down our business from a cost perspective or be distracting.
Speaker ASo I think, I think it's an awesome point you brought up.