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UPS Favors Drop In Gasoline Prices, Increased Revenue Forecasted

Jan 23, 2015 By Lori Martinez

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Ahead of the holiday season, consumer spending increased due to lower gasoline prices leading to increase in retail sale, especially during that critical period for the industry, revealed an executive at the United Parcel Service Incorporated on Tuesday.

Due to drop in gasoline prices, dollars in consumer pockets increase, something good for merchants who are expecting growth in sales.  The said fuel price drop has put more dollars in shoppers and consumers pockets, according to Kurt Kuehn, the company’s Chief Financial Officer.

UPS Favors Drop In Gasoline Prices, Increased Revenue ForecastedUPS looks forward growth, as there is boost in retail industry, crediting it all in the growing of the ecommerce market that accounts for about 45 percent of the company’s revenue. With these recent events, it is looking forward to rise by up to 50 percent within a five-year period.

Over the next two years, the company is expecting about three percent in growth within a two-year period even if UPS, the largest package delivery company in the US, is bullish on the US economy. Despite lower fuel prices, Kuehn revealed they would continue to look for alternative fuel sources; in fact, added that they were excited about natural gas as replacement to fossil fuel base gasoline.

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Filed Under: Business Tagged With: UPS

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