Though small businesses were excited at first about a new way to attract customers in a post-Yellow Pages world, many soon soured on the daily deals, The New York Times reports today. Customers who bought deals overwhelmed the businesses, spent the bare minimum and never returned.
(Note: The story doesn't reference Gannett's DealChicken service, which launched nationwide in July 2011.)
Shares of industry leader Groupon plunged 30% on Tuesday following a disappointing second-quarter earnings report. Yesterday, GRPN fell another 5%, to $4.75, after trading earlier for $4.51 -- both record lows. GRPN debuted at $20 last November.
Last month, CEO Gracia Martore told Wall Street analysts that DealChicken's second-quarter revenue had jumped along with its visitor count.
(Note: The story doesn't reference Gannett's DealChicken service, which launched nationwide in July 2011.)
Shares of industry leader Groupon plunged 30% on Tuesday following a disappointing second-quarter earnings report. Yesterday, GRPN fell another 5%, to $4.75, after trading earlier for $4.51 -- both record lows. GRPN debuted at $20 last November.
Last month, CEO Gracia Martore told Wall Street analysts that DealChicken's second-quarter revenue had jumped along with its visitor count.
How much more evidence does Gannett need that daily deals are a fad?
ReplyDeleteTake a look at this DealChick's
ReplyDeletehttps://www.unsubscribedeals.com/
Better change up that business model.
Read that article DealChicken sales managers and you will understand why its so hard to get businesses to sign up with press like that. They dont care if were Gannett, doesnt matter!
ReplyDeleteI hope Gannett spins off the Friggin' Chicken into an IPO so I can short it as soon as the lockup expires, usually 30 days.
ReplyDeleteEasy money.
VERY easy money.
On the advertising front -- NBC just had a big layoff.
ReplyDeleteToday is not good for any advertising vehicle. And very little reason to think it will get better, soon.
Deal of the Day: "Get 75% of Shares of Groupon. IPO Price $20 a share now yours for less than $5.00."
ReplyDeleteFORBES OP-ED: WHY G IS FAILING
ReplyDeletehttp://www.forbes.com/sites/ericjackson/2012/08/14/source-of-groupon-problems-managing-people/
" .. One in particular is its culture and having to now manage over 10,000 employees. It’s difficult – especially for a management team that really doesn’t have much experience doing that .."
Hey, look at all the mgt problems Walter White is having on "Breaking Bad." No cake walk.
G PROBLEMS IN FLA.
ReplyDeletehttp://venturebeat.com/2012/08/20/groupon-is-threatening-small-merchants-with-lawsuits/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Venturebeat+%28VentureBeat%29&utm_content=Google+Reader
choking the chicken baby!
ReplyDeleteKeep it up; keep posting more n more n more.ouffer sydney
ReplyDelete