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Will the NYT say "oops?"

I saw the teaser to the "internet sales slowdown" on Drudge, and then the full story in the NYT on the weekend. So I love the smackdown Jack Shafer administers in Slate Magazine on the same topic.

The story, by two normally pretty solid writers, is a great example of where anecdotes overwhelm data. In this case, the data does not support the conclusion, as Jack so aptly notes:

The economy grows about 3 percent in real terms per year, or about 5.5 percent to 6 percent in nominal terms. So anything that's growing faster than that is growing faster than the economy as a whole. Online sales, even if their growth rate would fall to 9 percent, would still be growing much faster than the economy (and hence other retailers as a whole). Wal-Mart's has sales of a few hundred billion dollars (i.e. about three times the size of the internet retailing space). Its same-store sales are basically flat, rising about 1.5 percent to 2 percent—in real terms, they're shrinking. Online sales are continuing to grow impressively in both absolute and real terms. Even if they only grow 6 percent a year, they will still grow nicely and take market share from bricks-and-mortar.

Facts. Pah. They just get in the way of a good story.

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Published Monday, June 18, 2007 11:01 PM by FrankShaw

Comments

 

michael arrington said:

I agree, but you'll pay for this comment down the road...

June 19, 2007 1:56 AM
 

FrankShaw said:

I'm hoping the public editor puts in a good word for me if things turn ugly!

June 19, 2007 6:37 AM

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