LivingSocial announces its deal with Whole Foods

September 14th, 2011 - 12:15 am ICT by Aishwarya Bhatt  

Washington, Sept 13 (THAINDIAN NEWS) LivingSocial has announced a collaboration with organic giant Whole Foods Market Inc. to run the first ever countrywide grocery store daily deals in the United States. The first deal will take place on Tuesday and will see customers offered $20 worth of products for $10 spent at Whole Foods store.

The offer is available to customers who register for the LivingSocial’s deals. There is a cap on the number of vouchers which will be available for grabs to customers. Initially, one million vouchers have been made available to subscribers.

When subscribers get the voucher, they will be able to convert it to a gift card when they visit a Whole Foods store. It is believed that LivingSocial is using the offer to increase its subscriber base in a bid to challenge deals giant Groupon.

Subsidizing groceries is a difficult task mostly due to the slim profit margin on the products. Analysts say LivingSocial may be paying out huge sum for the subsidies.

Groupon has offered a grocery deal before. The company is credited with driving the deal business since it was started in 2008. The industry is currently estimated to be worth billions of dollars.

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