Close
 

'Tis the season to redeem vouchers

  • Opinion
  • November 15, 2017
  • Paul Keane
'Tis the season to redeem vouchers

We all seem to be absolutely consumed by the power of online shopping, sometimes it seems to limited benefit, but as we enter the Christmas trading period, I suspect online buying will intensify.

Some of you may have observed the GrabOne opportunity offered by Dominos Pizzas over the past week.

The offer was the purchase of a coupon to entitle you to a $2 pizza. There was a maximum of 3 per purchase and you had to visit a Dominos outlet to collect your purchase, which had an expiry date of 6th December. Some 75,000 pizzas were purchased at close off. As that closed, the company posted a follow up offer of $4 pizzas. As of Sunday 12th of November they had sold 80,254 pizzas with the rest of the day to continue buying.

By my count, that's a total of 155,000 pizzas with a face redeemable value of close to $500,000. Now that's where this subject gets interesting. With the coupons having to be redeemed by the 6th December, there's a high chance that a large number will never be redeemed in time for the cut-off date. On the basis that only about 30 percent of such coupons are ever actually redeemed, it suggests Dominos are going to make a lot of money from un-redeemed coupons.

We really, as consumers are like sheep. This GrabOne opportunity with such a low cost entry of $2 or $4 is what I would describe as throwaway money as the value is that low. However, there is little risk for the company as proven redemption is very low. It really is a win win for Dominos.

So is it fair and reasonable? Why not? All the customer has to do is redeem the coupon by a given date. If they don't redeem it then it is their problem, not the seller as the terms of purchase have been made very clear.

I wonder however, how much money will be squandered by consumers over coming weeks as we enter Christmas. The last few years have seen purchased vouchers go down the drain from Dick Smith and more recently Nosh.

Despite the enthusiasm for online shopping, a level of maturity is required when making purchases that never have any likelihood of being redeemed. Where gift vouchers are concerned, buyers need to carefully consider the expiry date and the potential longevity of the retailer. Giving money away has no logic. Meanwhile, those who purchased a pizza, make sure you enjoy it!

 Paul Keane is a registered property professional and has vast experience in New Zealand’s commercial property industries. He provides retail and property consultancy including development management to many New Zealand property owners, developers and city councils. This post originally appeared on RCG's blog.

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Enhancing the experience: A growing demand

  • Design
  • November 22, 2017
  • Courtney Devereux
Enhancing the experience: A growing demand

Some commentators think food and integrated hospitality offerings will save brick and mortar retail from obsolescence in the age of ecommerce. But does catering to the consumer’s every need result in sales, or are shoppers moving on without making a purchase? In the Enhancing the experience series Courtney Devereux looks into why these two different sectors are working together.

Read more
 
 

Styleshoots launches for retailers this week

  • In Association with LookDepot
  • November 22, 2017
Styleshoots launches for retailers this week

Consumers respond well to high quality product images – yet they respond even better to a more immersive, multimedia shopping experience with video content, says LookDepot managing director Andy Mackie.

Read more
 
 
 
topics
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
Sisterhood
Women in retail help one another. We spoke ...
All things to all people
Kiwi retailers share their omnichannel strategies.
How to open a store
Sarah Dunn considers what it would take to ...
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 

Kiwi retailers cash in on Singles’ Day

  • News
  • November 21, 2017
  • Sarah Dunn
Kiwi retailers cash in on Singles’ Day

The Chinese holiday Singles’ Day, popularised by Alibaba as the ’11.11 Global Shopping Festival’, is now the biggest sale event in the world. Alibaba reports that US$25.3 billion of gross merchandise volume was settled during the 24 hours of Singles’ Day this year. Not all of that went to Chinese retailers, however – a handful of Kiwis made the most of the opportunity.

Read more
 
 

Updated: Noel Leeming launches a dedicated after-purchase services division

  • Technology
  • November 20, 2017
  • Sarah Dunn
Updated: Noel Leeming launches a dedicated after-purchase services division

The Warehouse Group’s electronics retailer Noel Leeming has been looking at expanding its focus on services this year. Now, it’s launched a dedicated after-purchase services division: MyTechSolution. The change also means that customers will be charged for access to Noel Leeming's helpdesk if the request goes beyond a "quick fix".

Read more
 

Cameras aren’t just for security anymore

  • In Association with Axis Communications / Sektor
  • November 20, 2017
Cameras aren’t just for security anymore

In-store video cameras revolutionised loss prevention when they first became available to retailers, but as camera technology continues to evolve, they can now provide a plethora of data that supports better business decisions.

Read more
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita@tangiblemedia.co.nz or call 022 639 3004

View Media Kit

}