Alabamians are predicted to open their wallets and bank accounts for $18.5 billion in holiday spending this year. That's according to the Alabama Retail Association.
The organization reports residents of the Yellowhammer State spent 2.8% more during November and December 2023 than they did during the same period in 2022. For all of 2023, Alabama retail sales grew 3.42%.
For the first eight months of 2024, taxed sales in Alabama declined slightly more than a half percent compared with January to August 2023, based on Alabama Revenue Department abstracts.
A 1% reduction in the tax rate on food starting September 2023 accounts for that slight year-over-year decline in sales tax collections. That puts overall sales about level with 2023.
Alabama Retail Association’s holiday spending prediction covers all taxed sales, including those from remote sellers, during the months of November and December.
The National Retail Federation expects winter holiday spending to grow between 2.5% and 3.5% nationally over 2023. NRF’s calculation excludes automobile, gasoline and restaurant food sales, while the Alabama Retail Association’s projection excludes only gasoline sales.
Resilient consumers are extra resilient during the Winter holidays
Consumers tend to buy for loved ones and friends during the holiday season no matter the economic situation. They save for it, and they plan for it. For the past five holiday seasons in Alabama, sales have grown an average of 7% each year, reports the Alabama Retail Association.
From 2019 to 2023, sales in the final two months of the year grew almost 40%. Throughout that period, consumer spending remained resilient through the pandemic, inflation and political conflicts.
Alabama retailers stocked their shelves and warehouses with holiday goods by late summer or early fall. State economy experts suggest getting orders in early to give plenty of time for shipping— by early November for Thanksgiving and by the beginning for December for Christmas.
There are five fewer days between Thanksgiving and Christmas this year, which means consumers need to ship sooner than last year.
Alabamians continue to spend, shop early and shop smart
Looking for the best deals for their holiday purchases, consumers everywhere continue the trend of stretching their shopping budget out over a longer period.
According to an NRF consumer survey, the average consumer will spend $902 this year on gifts, food, decorations and other seasonal items. Many began holiday shopping as early as August, while others made a sizable dent in October. All consumers continue to shop smarter and shop early.
The Alabama Retail Association continues its #ShopAlabama campaign and encourages consumers to shop with local retailers in their communities.
“The stores down the street or around the corner support your community in big and small ways daily,” said Alabama Retail Association President Rick Brown. “By shopping with retailers based in your community or our state, you contribute to the health of your local and state economies.”
