A cost-effective, in-store coupon dispensing system that increases coupon redemption rates and product turns. The system includes a point of sale system including a terminal having a data reader for reading transaction data, and a system memory for storing read transaction data. An electronic coupon dispenser includes a memory for electronically storing a plurality of coupons, one or more user interfaces for permitting selection of any of the plurality of coupons from a coupon menu, and one or more printers for printing coupons elected at the user interface. The coupon dispenser generates coupon-related data based on user interface selections and coupons printed by the system. A central data base facility is operatively connected to the point of sale system for downloading coupon redemption data and to the electronic coupon dispenser for downloading the coupon-related data. The central data base facility communicates with the electronic coupon dispenser in response to first predetermined parameters and with the point of sale system in response to second predetermined parameters. The coupon dispensing system of the present invention finds particular utility in grocery stores or other stores having inventory having limited shelf life.