Did 'Goods' Just Make Groupon Worse, or Warehouse Clubs Better? [Infographic]
The good news is that Groupon's newest product, Groupon Goods, showed the most growth in the second quarter of 2012. The bad news is that inventory costs made the profit margins smaller than they were for daily deals on spa treatments and restaurant meals. In response, Reuters reports that Barclays Capital has downgraded the company's stock, which sent stock prices tumbling 2.4 percent to $4.54. But as far as discount shoppers are concerned, the new product could be an improvement on an old favorite: the warehouse club. And if the company can help small business owners with their inventory, the merchants might benefit as well.
The good news is that Groupon’s newest product, Groupon Goods, showed the most growth in the second quarter of 2012. The bad news is that inventory costs made the profit margins smaller than they were for daily deals on spa treatments and restaurant meals. In response, Reuters reports that Barclays Capital has downgraded the company’s stock, which sent stock prices tumbling 2.4 percent to $4.54.
But as far as discount shoppers are concerned, the new product could be an improvement on an old favorite: the warehouse club.
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