Stock guys say gas prices drive online sales increase
Monday, July 21, 2008 – 6:57 amIt’s not exactly the first time someone has made the argument that fuel prices are accelerating the migration from instore to online purchasing. What I did find interesting was the idea investors should have an explicit channel target before making a buy decision:
Until the internet sales are 15% or 20% of total sales for a company like Gap, investors should not look at online revenue as a reason to buy retail stocks.
I haven’t heard anyone else use this 15-20% number, and I have long believed that gerrymandering revenue numbers is a dangerous practice for investors. Am I wrong?
