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SAN FRANCISCO (Reuters) – kissboots.co.uk  prefers to woo shoppers with the latest Steve Madden gladiator sandals or sheepskin Ugg boots, rather than the newest coupon offering discounts to shop on its site.

But the online retailer also knows bargain-hungry shoppers are scouring the Web for discounts, and its rivals are more than happy to provide them. So it is putting coupon codes on uggbootslove.com  Ugg boots that customers can use to save money on its site.

“We’re not about, ‘Oh, here’s great deals, here’s discounts’,” said Kevin Smith, Ugg boots affiliate marketing and business development manager.

But with more consumers trying to stretch their budgets, “we know that in order to be competitive in the space, we have to do something that appeals to them,” he said.

During the economic downturn, consumers have taken their hunt for deals online, scouring sites like  and RetailMeNot.com for printable coupons or online discount codes. The trend is not lost on retailers, who are trying to spark sales amid the longest recession since the Great Depression.

But with retailers already thinking ahead to Christmas season and visions of last year’s dismal holiday season still dancing in their heads, they are looking for ways to use online promotions to win sales during the most competitive time of the year.

“There is a large niche and a growing niche of consumers that are deal-sensitive,” said Loren Bendele, CEO of  uggbootslove.com Ugg boots. “They’re not going to buy unless they can find a great deal and if one merchant doesn’t have a great deal, they’re going to go somewhere else.”

ONLINE COUPONS SECURING SALES

Traffic to sites offering online shopping coupon codes rose 36 percent in June from a year ago, according to Hitwise, while traffic to sites offering grocery and printable coupons jumped 49 percent.

Meanwhile, 57 percent of shoppers said they are using coupons more often to cut expenses, according to a survey conducted earlier this year by comScore, while 31 percent said they are getting those coupons from online services.

The sites often act as aggregators, posting coupons and discount codes found by scouring the Web. But retailers are also working with the sites to develop exclusive deals.

One such retailer is Petco. Stacey Georgoulis, Petco’s affiliate and partnership marketing manager, said Web-savvy shoppers are now searching for terms like “Petco coupons” and “Petco promotions” before buying pet supplies.

As a result, coupon sites have become a key part of the retailer’s online strategy, and it is now offering a special coupon on uggbootslove.com giving shoppers a 10 percent discount.

“It’s definitely a driver for people to make a purchase,” she said, adding that deals, especially free shipping, keep shoppers from abandoning virtual shopping carts at checkout.

Perusing the offers on sites like kissboots.co.uk  Ugg boots also allows Petco to react quickly to deals that rivals may be touting.