a bias to giving a 10% discount...why don't the stores simply lower their prices 10%? Frankly, because they don't have the margin...so they're cutting off their nose to spite their face
That was my first thought.

I'm pretty sure our local merchants don't have that 10% to give across the board. I'm sure most see it as the same thing as a coupon. Not everyone is going to participate, so it's not 10% on everything they offer. I'm sure the currency doesn't apply to some high-dollar items, either (restrictions apply).

I wouldn't participate, because of the hassle factor. I don't get Wal-Mart gift cards for cheaper gas for the same reason. I'd rather just assume my time is worth more than the 3 cents a gallon I would get by buying a gift card when I'm in the store. It's inconvenient, and I would be ticked off to be inconvenienced to go in the store, stand in line, make the transaction, just to save the 30 cents on 10 gallons. (Although I think you can recharge the cards at the pump, now.)

I live in the town where Sam Walton almost landed, instead of Bentonville. It has one of the oldest Wal-Marts in the store's history (20,000 people). We have a thriving local merchant scene. They simply don't carry what Wal-Mart does, or if they do, they have more variety and are more specialized. We have two grocery stores, more than a few tire shops, an office supply, several drug stores, shoe stores, etc., all locally owned. I would say our town is part of the post-Wal-Mart era.

I never hear anyone complaining about Wal-Mart putting local merchants out of business. It didn't happen when WM first came to town, either, because WM started as a Main Street business in those days, too. The truth is, if you can't compete in your business, the market will force you out. Whether that's a big-box coming in or just better competitors in your demographic. The businesses that are still here 30 years after the first Wal-Mart, and the second and now the third or fourth (it's a super size, now), are just better at what they do. That's the way I look at it.

Karen