Kmart's Coupon Mistake Becomes PR Blunder

Mistakes happen. Everyone knows that. Usually the best approach is to admit the mistake was made, apologize and then move on to making amends and insuring it doesn't happen again.
Last week, Kmart made a mistake. It sent out an email to customers offering them a link to a coupon worth $10 off any purchase of $20 or more. The coupon, posted on the Kmart website, was intended for shoppers in Baltimore, Chicago and New York. It did not, however, specify the geographical limitation and instead said it was valid at all locations.

Being 2010, many Kmart shoppers saw the coupon online, printed it and then head out to their local store to redeem it. Many told their friends about it so they could do the same. What happened next, based on a variety of reports and posts of Kmart's Facebook page, was not pretty.
Cashiers and managers in stores where the coupon was not valid refused to accept the coupons and, in some instances, went so far as to accuse customers of trying to cheat the retailer.

Seeing that the coupon had gotten out, Kmart pulled it with the following explanation: "A coupon for $10 off a $20 purchase has had unauthorized circulation and we have had to stop accepting it at most stores. The coupons will still be honored in the intended stores in the New York, Baltimore and Chicago area. We regret any inconvenience this may cause our customers. Thank you for your continued patronage and we do look forward to sharing other deals and offers with you in the future."
One poster on Kmart's Facebook page wrote, "These are tough times. If Kmart thinks that people will not seek out and use coupons to the full extent of their terms, they are not making wise decisions at the highest level of management. What is absolutely shameful is the accusation that customers were attempting to use fraudulent coupons. If you make a mistake, admit it, don't blame it on someone else."
Another wrote: "This incident has gotten out of hand. While it's obvious that the coupon was too good to be true, the bulk of the blame lies with the company. The accusation of 'unauthorized circulation' is not the appropriate response. Kmart, you need to admit to the mistake that your own company made. This alone will go a long way toward repairing the store's image in the eyes of many customers."

Kmart Facebook Page - Facebook