Bed Bath & Beyond Eliminating Coupons?
Bed, Bath & Beyond may be getting rid of its coupons after realizing that the ubiquity of 20 percent off deals is backfiring for the company. The retailer is testing a beta version of its new "Beyond+" loyalty program. The program offers perks including free shipping and 20 percent off every entire purchase, for a membership fee of $29 per year. If the test proves successful, it could signal the end for Bed Bath & Beyond's couponing ways.
Total Retail's Take: The only people who may be more disappointed with this news than my wife, who won't make a purchase at Bed Bath & Beyond without a coupon, is executives with the USPS, who will be seeing those big blue coupon postcards leaving the mail stream. Bed Bath & Beyond is trying to reverse years of eroding margins driven by its aggressive discounting policy with a move to a pay-for-play loyalty program, a la Amazon Prime. If my one-person survey here at home is any indication, it's not going to work. The discounting train, so to speak, has already left the station. There's no turning back now.
Joe Keenan is the executive editor of Total Retail. Joe has more than 10 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.
