No one knows coupons like Americans. But they’re pretty popular up north, too. Just not quite as popular among cost-conscious shoppers as you might expect.
Canadians are feeling the pinch of higher prices, just like their American neighbors are. When it comes to seeking value, though, a new survey finds that they’re looking for more than just coupons and deals.
The consulting firm BCG has declared that “Canada’s shoppers want value certainty, not coupons.” The shoppers it surveyed said they’re looking for predictable value and everyday low prices – and when it comes to saving money, coupons and promotions are further down their list of priorities.
When asked to name the factors that help provide the most bang for their Canadian buck, shoppers ranked “quality for the price” as their number-one preference across all product categories, from groceries to clothing to household products. “Low regular prices” were a solid number-two. “Frequent promotions and discounts” was ranked third, and “deep promotional discounts” came in a distant fourth.
“Bargains are no longer enough,” BCG concluded. “Predictable value matters more than ever.”
After all, there’s no sense paying a low price or getting a good deal if the product you end up with isn’t worth it. Whether it’s groceries or appliances or home furnishings, shoppers told BCG that quality, performance and durability play key roles in their purchase decisions.
And when it comes to how much they’re willing to pay, they’d rather get a fair price up front than have to hunt for deals. Across income levels, shoppers said they look for low regular prices. Nearly three-quarters of shoppers who consider themselves less financially-secure prefer everyday low prices to promotional discounts, and nearly half of shoppers with more financial cushion feel the same.
Inmar Intelligence, which tracks coupon use in both Canada and the U.S., recently reported that coupon use at the halfway point of this year had declined in the U.S., but was actually slightly up in Canada. Coupon redemption was down 6.4% in the U.S., marking the first decline since 2022, while it was up 1.1% in Canada, “reflecting higher offer efficiency and relevance”, Inmar noted.
Conventional wisdom might have you thinking that coupon use ought to be way up in both countries. The more worrisome that economic conditions and individual financial situations are, the more attractive coupons and deals might seem to shoppers who’d like to get more for less.
But coupon-clipping takes work. And coupons may not always be available for the products you want. Going to a place like Walmart or ALDI, though, helps many shoppers save money without even having to try.
So BCG advises retailers to “champion everyday value,” prioritizing low prices and streamlining promotions “to avoid consumer fatigue.” Private label products are increasingly important, especially if they “match national brands in performance and design, but sell at lower prices.” And instead of focusing on confusing points and perks, loyalty programs should offer tangible rewards, “such as guaranteed discounts on staple categories” or “‘members pay less’ pricing that reinforces trust at the shelf.”
There will always be shoppers who like hunting for deals, and are willing to put in the effort to clip coupons. And if they do so, they can save a lot more than some who rely on everyday low prices alone. But while some see couponing as an enjoyable pastime that pays off, others see saving money as more than just a lark.
That’s even though having to work for the lowest possible price is less important to them than getting a fair price for a quality product up front. With tens of billions of coupons issued each year, though, the fewer of them that are used by shoppers who prefer low prices – the more coupons there will be for the rest of us.
Image source: cpyles 
