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The Recession Will End… When Coupons Are So Yesterday
Like the Great Depression in the 1930s, the Great Recession seems destined to turn many Americans into lasting coupon-cutters, scrimpers and savers. (via AP)
Why it might be false: Coupon clipping is in vogue during the down economy, but recent history shows that this trend comes and goes with the economic cycles. According to Inmar, a coupon-processing company, coupon redemption reached its height at the end of the early 1990’s recession. Coupon use fell fairly steadily until the end of 2008 but then picked up again when swaths of demographic groups like young, single and affluent consumers started to use coupons. While it’s true that these groups would never be expected to clip coupons, let’s be real and admit that it’s hard to go against the grain when signs of the downturn are ubiquitous. In fact, their coupon use may even be attributed to peer pressure since conspicuous spending is so out. It’s almost impossible not to want to be disciplined and spend money a little more wisely during the Great Recession, but this restrained way of living probably won’t last when it’s over.
Why it could be true: A recent IBM survey indicated that people expect to continue their cheap ways; 45 percent of the people involved said “better value” will remain a top priority when shopping for food as the economy improves, and 36 percent said “lowest price overall” will stay top of mind, too. Only eight percent said value will be less important. At these rates, the popularity of coupons could continue in perpetuity.
Our call: Coupons are just one indicator that the Great Recession has not only forced many to manage money more responsibly but also more intelligently. There are a lot of great deals and opportunities for saving money with or without the Great Recession, and a lot of us have learned some tricks of the shopping trade (or, in other words, retail therapy trade). With these lessons learned, it doesn’t make sense not to use some of them even after the recession is over. That said, the hot coupon-clipping will follow the destiny of yesterday’s “It” bag, in today out tomorrow.
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With more companies generating coupons that can be printed at home, I believe that coupon use will continue. No doubt that people will tire of sifting through piles of coupons hoping to spot the ones they want. What really remains to be seen is which companies embrace the new technology and which ones continue to rely on a bad economy to generate interest.