Groupon Key Metric
interesting to note that the original S1 does not at all give details on “same merchant sales” ie- repeat merchants. At that time I had wondered what that metric was and why the company would not release a key metric. We now have the answer: The amended S1 states as follows “In light of our significant merchant pool and our objective to promote variety in our daily deals, our general practice to date has not been to pursue repeat merchants.”
So now we know- the number is not relevant ( or they dont want to release it) according to Groupon because- well, they dont think its something that would be a good general business practice and they dont even bother pursuing repeat customers- its a one and out…- Do they think there is an unlimited supply of quality merchant ? Can they sustain the business with that approach…
On a side note- without seeing the SEC comments i can’t be sure but, I suspect that there was some sort of comment relating to repeat business- given the additional usage of the word “repeat” vs no usage in the first filing- just my educated guess.
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