The good news is that Groupon’s newest product, Groupon Goods, showed the most growth in the second quarter of 2012. The bad news is that inventory costs made the profit margins smaller than they were for daily deals on spa treatments and restaurant meals. In response, Reuters reports that Barclays Capital has downgraded the company’s stock, which sent stock prices tumbling 2.4 percent to $4.54.
But as far as discount shoppers are concerned, the new product could be an improvement on an old favorite: the warehouse club. And if the company can help small business owners with their inventory, the merchants might benefit as well.
In this infographic, we compare shopping on Groupon.com to shopping at a brick-and-mortar warehouse club like Costco. We also compare the daily deal site’s recent quarterly earnings to those of Costco and a designer overstock business, T.J. Maxx (parent company TJX Cos., which also owns Marshalls). A better direct comparison for TJ Maxx would be a flash sale site like Ideeli, but we lumped it in with Costco because, excluding groceries, both companies share many products in common with Groupon Goods.
Take a look.