Starbucks, Living Social Join Up for Gift Card Offer (SBUX, GRPN, GOOG)
The world’s largest coffee store chain, Starbucks Inc. (NASDAQ: SBUX) will offer customers a $10 store gift card for $5 through daily-deal company Living Social, a competitor to Groupon Inc. (NASDAQ: GRPN). Starbucks made a similar offer to customers through…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
One of the knocks on Groupon both before and after its IPO was that there was a low barrier to entry for competing daily-deal offers. Groupon’s stock posted a new 52-week low today of $4.00 before gaining some of it back.
Starbucks’ chief digital officer had this to say about the deal with Living Social:
It’s an evolving space. The type of deal, the type of merchant and the implementation of offers are going to be different from circumstance to circumstance.
Starbucks and Living Social expect to sell 1 million of the half-price gift cards.
Starbucks shares are up 0.2% in after-hours trading today, at $48.62 after closing the regular session down 0.2%. The stock’s 52-week range is $35.12 to $62.00.
Paul Ausick
Contact [email protected] for any questions or corrections.
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
