Friday 28th Oct 2016 - Logistics Manager

Groupon opens first logistics centre

Groupon, which made its name with its discount voucher operation, has opened is first logistics centre.

The warehouse is the primary fulfilment centre for Groupon’s Goods business. This was launched in 2011 and now accounts for more than $1.7 billion in annualised billings.

“With its thriving workforce and vibrant community, Northern Kentucky is an ideal location for our new Groupon Goods Fulfilment Centre,” said Groupon chief executive officer Eric Lefkofsky.

“Opening Groupon’s first warehouse here will help us better serve our customers, and we look forward to being a part of this great community.”

Groupon made a net loss of $2.6m in the third quarter of 2013 and it has set itself the target of moving from the “daily deal” business to a full e-commerce provider.

“Our Local business showed continued strength in the quarter, particularly in North America,” said Lefkofsky in the third quarter results.

“Mobile adoption continued to increase in Q3, reflected in our record 9 million app downloads. We’re pleased with our progress, but we still have work to do as we transform the business from our daily deal email roots to a full e-commerce marketplace.”

Groupon Goods operates in Europe through Groupon Goods Global GmbH, a Swiss company that buys and sells products (such as electronics, home furnishings, clothes, etc).

In an interview in the “Wall Street Journal” in August, Lefkofsky said Groupon was looking at building a network of warehouses to reduce delivery times.