Groupon teams up with Westfield to give bricks and mortar retailers access to deals

Groupon Australia has teamed with property giant Westfield to deliver new types of hybrid deals that will see the online-only entity start making its way into bricks and mortar business, in what group buying analysts say is a natural progression.

The move comes just weeks after new data released by research firm Telsyte indicates the group buying market is well on its way to hitting $US1 billion in Australia by 2015.

Westfield announced in a statement the new program, called Groupon Powered by Westfield, will allow users to access deals through both the Westfield and Groupon apps.

There, users will be able to get deals of up to 70% off services including entertainment, beauty treatments, travel and various products.

Retailers within Westfield malls won’t pay to list deals, but they will pay some money to Westfield and Groupon when the offers are redeemed in store.

Telsyte senior research director Sam Yip says the deal comes as bricks and mortar retailers are looking to make more online deals, while group buying sites are attempting to move more into physical products rather than services.

“We’re seeing a lot of products being sold in the group buying market. With Westfield and Groupon you’ve got two giants, one of the biggest group buying sites in Australia partnering up with the biggest retail giants.”

“It’s really a match made in heaven.”

There are challenges, Yip says, which mostly revolve around getting customers to understand how the deals work.

“They need to understand the concept, understand what it means and how it all works. But this whole thing is a natural progression.”

“All the businesses and companies that have a stake in the bricks and mortar world are looking at the online model and what it can do for them.”

In a statement, Groupon Australia chief executive Tobias Teuber said the new deal will help bring more customers to its Westfield retailers and give the retailers access to more marketing channels.

“Groupon is confident that this partnership will give us the opportunity to expand our deals on a host of new products and services that Australians recognise and love.”