The back-to-school shopping season has started firmly, allaying some concerns about US consumer stability Bank of America Corp BAC, Bloomberg reports.
Spending on school supplies, including college, is expected to hit a record high of $111 billion in 2022, up 1% year over year, the National Retail Federation estimates.
The institute recognized the two years of already high back-to-school spending thanks to government incentives and the purchase of electronic devices to introduce distance learning.
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BofA confirmed the trend of consumers stocking up earlier this year as price-conscious shoppers look to get the best deals. While the postponement would be beneficial for the month of July, it will impact the month of August.
The results reflect the resilience of US consumers despite rising inflation and recession concerns. Shoppers are likely to spend a record amount this school year due to higher prices and economic conditions, according to a Deloitte survey.
Competition has also intensified with Amazon.com Inc’s AMZN Midsummer Prime Day Sale.
Tigress finance was bullish on Amazon, citing continued momentum in Prime membership, increasing third-party traction, AWS strength, and growth and price gains.
BofA acknowledged that during the holiday season last winter, consumers also shopped earlier to get better deals and avoid delays due to supply chain issues. Similar to 2021, e-commerce is also likely to play an important role, BofA added.
Price promotion: AMZN shares closed up 2.07% on Friday at $143.55.