Computers in Supermarkets : In-Store Coupon Machine Bids to End Hassle of Clip and Save

A computer that dispenses coupons right in the store may save consumers the chore of clipping the discount certificates, but it also might encourage impulse buying.

Coupon Systems Inc. has installed 52 of the computers in Safeway stores in the San Francisco Bay Area and 65 in stores in the Seattle-Tacoma area.

“There’s no question coupons are popular among consumers, but they’re a hassle, not just for shoppers, but for manufacturers and grocers as well,” said Mike Downs, president of the Los Angeles-based company that aims to make coupons more desirable.

“The system generates new trials and added sales, it encourages impulse buying and it lets shoppers choose the products they want coupons for while they’re in the store,” he said.

Coupon Variety Limited

With the new computers, consumers select coupons from a variety of products listed on a large color display screen. At first, the choice of coupons will be limited to about 10, but Downs says he hopes to offer consumers as many as 40 later.

Downs said the machines will save coupon collectors hours of clipping, will reduce paper litter and will eliminate the frustration of leaving wanted coupons at home.

Company officials believe the coupon machines also will draw many shoppers who ordinarily do not use coupons.

The machines also eliminate the cost and delays associated with traditional coupon clearinghouses. “The average cycle of the coupon is about one year,” Downs said. “The computer reduces the cycle to a matter of days.”

Manufacturer’s Cost Cut

Manufacturers profit from the system by paying only for coupons redeemed, not coupons distributed, while stores benefit by receiving advance notice on all upcoming promotions, allowing them to order extra inventory, he said.

Downs said he hopes to expand into other West Coast cities soon.

Janice Brett, a spokeswoman for Coupon Systems, said the machines could revolutionize the coupon industry.

“People were getting sick and tired of clipping coupons. It seemed that every week the coupon sections of the paper kept getting bigger and bigger,” Brett said. “This has got to be a better alternative.”