From clipping coupons to clicking on them

updated 6:08 p.m. ET Jan. 13, 2008

CINCINNATI - Some coupon users are clicking instead of clipping these days to get their grocery discounts.

Supermarket chains are trying out paperless, or digital, coupons, to help the thrifty-minded save time while saving money. Shoppers load the online discounts onto their store loyalty cards, receiving the credit at the checkout.

Grocers see the innovation as a way to build customer loyalty, drawing consumers who are increasingly spending time online to their Web sites and ultimately, their stores. The move could increase coupon use by attracting shoppers who don't bother with paper coupons. It offers convenience for the companies in reducing handling, tallying and shipping of coupons, as well as cutting paper use.

Kroger Co., the nation's largest traditional grocery chain, and Procter & Gamble Co., the largest consumer products company, are partners in a digital coupon trial that began last month. Other supermarket companies around the country have been trying out ways to offer digital discounts in addition to the traditional clip-outs from newspapers and mailings.

Although online coupons for ordering everything from DVDs to laptops on the Internet have been around for several years, couponing, especially for groceries, is still dominated by paper. Digital use by companies with the combined reach of Cincinnati-based P&G and Kroger could help transform habits.

Some early users like the convenience of paperless coupons.

"You don't have to waste your time going through all those little pieces of paper in your purse," said Carol Hoffman, a Covington, Ky., woman who's been using digital coupons on her Kroger card.

"It's really nice, because I always forget to bring my coupons along ... and I don't have to organize them," said Therese Sangermano, a Cincinnati mother of three who's been using the paperless coupons to save on P&G products such as Pampers diapers and Dawn dishwashing liquid.

The digital coupons, which are posted on the grocers' Web sites, can't be doubled, but expiration dates still apply. Selections are limited during the initial trials but companies expect to expand digital offerings soon.

Giant Eagle, a Pittsburgh-based regional chain, in November launched "E-offers," allowing customers to load coupons for 20-plus products, including national brands such as Minute Maid orange juice and Kellogg's cereal, to their loyalty cards. Giant Eagle spokesman Dan Donovan said it plans to expand paperless coupons as customers become familiar with the program.

Coupons for groceries date to the late 19th century, and industry experts say the majority of American households still regularly use them. Combing through Sunday newspaper coupons is still a ritual in some homes, and a scene in the "The Sopranos" TV series found Paulie "Walnuts" Gualtieri clipping coupons, showing that even mobsters used to flashing wads of $100 bills like to get their 50-cent discounts.

Annual savings is estimated nationally at about $3 billion, but that's only a small percentage of potential savings from unused coupons, according to industry estimates of redemption rates as low as 1 percent.

MORE FROM RETAIL

Retail Section Front

Retailers gear up for ‘Super Saturday’ rush Walmart.com boss sets his sights on Amazon Dungeons & Dragons fight: Hasbro vs. Atari Early ‘Boston Market’ restaurateur dead at 52 Tough times seem to benefit General Mills ConsumerMan: Giving charity gift cards Christian parody products walk a fine line Big holiday crunch-time sales? Probably not Chapter closing on lone Laredo bookstore McDonald's to lift fee for Internet access Retail Section Front   Add Retail headlines to your news reader: