NEW YORK -- Bed Bath & Beyond shoppers are all too familiar with the retailer’s 20 percent off coupons.
The home furnishings retailer offered several reasons why they plan to cut back on the distribution of the coupons. The promotion cuts into profits, which fell 10% percent despite revenue sales being up 1.7% this quarter, according to Business Insider.
The coupons have gone from introducing customers to the store, or rewarding customers from visiting, to training customers to expect only a sale price.
Bed Bath & Beyond customers aren’t purchasing items at full price, because they are waiting for those coupons to arrive instead of going to the store to browse.
This becomes a problem in retail, if a brand is only associated with discounts.
Another way the coupons are seen as detrimental to sales is that they never expire.
Store officials told investors they’re scaling back on the 20 percent off coupons.
“They are being a little mysterious about it,” the financial reporter said. “But they are promising investors they will scale back.”