Plenty has been written about the daily deals space lately predicting that it's going to collapse thanks to Groupon's recent struggles.
While there are definitely too many players in the market chasing too many small retailers, there is a group-buying startup out of Toronto that is having success by aiming higher.
Buytopia hit our radar when they partnered with Sears Canada to launch the department store chain's first foray into daily deals. The Sears offer sold 5,000 $50 for $25 coupons that were redeemable at Sears locations across the country.
Next week Buytopia will be at it again with a week-long promotion with Staples in Vancouver, Calgary and Edmonton starting on Tuesday, October 4th. This time around the coupons are geo-targeted with a $40 for $20 deal in Vancouver, a $50 for $25 deal in Edmonton, and a $20 for $10 in Calgary.
So why are Sears and Staples taking a flyer on a Toronto startup rather than going with the most recognizable brand in daily deals? According to Buytopia.ca co-founder Ryan Marien it is likely because Groupon is largely an email-based offer whereas Buytopia's marketing machine taps into email, on-and offline advertising, social media, and affiliate marketing.
Time will tell if it is worthwhile for National chains to leverage daily deal sites rather than going the traditional flyer and TV advertising route. In the short term, smart shoppers win as they wade through the plethora of offers in their inbox.
Buytopia was co-founded by Marien, Anatoliy Melnichuk and Michele Romanow and has a strategic investment from Toronto's BNOTIONS.