Bank of America (BofA) reported Tuesday that the momentum in e-commerce sales persisted through July, with aggregated credit and debit card data showing total online spending up 7% year over year — matching June’s growth rate.
In its research note, the bank highlighted that in-store sales slipped 1% during the same period, lifting online market penetration by 150 basis points to 28.3%.
BofA said the boost was “likely aided by an extended Prime Day promotion window and competitor sales.”
“YTD data suggests Online penetration has accelerated since tariff announcements, but we have noted a gradual improvement in monthly penetration gains since 2023, suggesting any reopening impact continues to fade,” stated BofA.
When it comes to Amazon (NASDAQ:AMZN), the bank described early industry figures as “constructive” for the North American market. Wall Street forecasts point to 9% year-over-year retail growth in Q3, moderating from 11% in Q2.
BofA’s preliminary data indicated “stable growth relative to June and a slight improvement over full Q2 that grew 6% y/y,” with July’s figures likely boosted by Prime Day. The bank added that Amazon is “relatively well positioned with forward deployment of inventory” even amid tariff uncertainties, keeping its Buy rating intact.
On the delivery side, BofA noted that online restaurant spending climbed 9% in July, up from 8% in Q2, potentially signaling favorable trends for DoorDash (NASDAQ:DASH). Online grocery sales advanced 7% year over year, consistent with the prior quarter.
In terms of category performance, the bank said sporting goods, department stores, and health and personal care posted the strongest acceleration in July, while transit, restaurant delivery, and grocery growth eased slightly.
BofA concluded that the e-commerce sector should keep gaining from long-term structural drivers.
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