In a move that might be construed as either smart or desperate, Groupon is launching Groupon Reserve in 10 cities across the US in hopes of picking up some high end business as opposed to a two for one burger deal. The first cities to get access to these oh so ritzy deals are Atlanta, Boston, Chicago, Denver, Los Angeles, Miami, New York City, Philadelphia, San Francisco and Washington, D.C..
The interesting thing is that Groupon has been going steadily downhill as their model has proven to be less than a great deal for many small businesses. As fewer and fewer businesses sign on, they have shifted their focus to Groupon Goods, vacations, and other things, while their original core business; local deals, continues to dry up. Thus, you have to ask whether going for the high end is a good strategy or just another hail Mary pass in an effort to keep the doors open.
How this new idea will work is anybody’s guess, but with the economy continuing its flat trajectory and consumer confidence equally flat, you have to wonder. But then, they say the rich (or those who want to appear rich) are different than the rest of us, so maybe this will work out.
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