Groupon will no longer sell physical products. Return to the origins with local experiences

The golden days of Groupon are now a mere memory of the past. The Chicago company, a pioneer in the online discounts for restaurants and shops in general, a business that has proved less flourishing than expected over the years, has reached a 25% drop in the after market in recent days. Net profits growing but in fact the company must renew itself and to do so he decided to appoint Melissa Thomas as chief financial officer and to change strategy in the world of sales.

Groupon: new life. Via the product discounts

The company’s goal is to relaunch that can allow users to find in Groupon that useful tool to find “local experiences” interesting as wine tasting, overnight stays in unique locations or even courses of any kind. All clearly discounted or exclusive activities that Groupon has always offered to its members since the beginning but which in recent times had gone a little fading due to the presence of ever greater proposals for discounted or limited edition physical products.

The so-called “Local Experiences” they must return to excel and satisfy the needs of users. Here it is the company is ready to eliminate the “Shopping” section which basically went to occupy even 40% of the portal and which allowed earnings that were around 20%. The focus will go to local experiences that will bring the company back to its golden days, at least that’s what they hope for.

Product sales, however, had only brought Groupon the beauty of $ 1.12 billion or more than 50% of total revenue to Groupon in the last quarter of 2019. A brave change therefore that somehow tries to bring back on a precise path, that of the past, the company that had been contested in past years also by courtships of Google and Yahoo !.