Holiday spending in Alabama should near $18 billion, growing 5% from last year’s record-shattering spending.
Alabamians spent 15.4% more during November and December 2021 than they did during the same period in 2020, which was the highest holiday growth rate ever for our state.
Through November 2022, taxed sales in Alabama had grown 8.03% over the same 11 months in 2021, based on Alabama Revenue Department abstracts. November taxed sales grew slightly more than 4% compared with November of 2021.
The National Retail Federation’s shopping survey showed 76% of consumers shopped over the Thanksgiving holiday weekend and consumers made half of their holiday purchases through Cyber Monday.
As Alabama Retail projected earlier this year, sales have continued to grow in Alabama, just at a slower pace than the exponential increase the state saw in 2021. Growth was at 8% in the first quarter; 7% in the first half of 2022; and back above 8% in the third quarter. Nationally, the U.S. economy grew 2.6% in the third quarter. The National Retail Federation’s 2022 holiday forecast projects between 6% and 8% c0re retail sales growth in November and December.
A 5% growth rate in the traditional holiday spending months would put taxed spending at $17.9 billion in our state. In the final two months of 2021, Alabamians spent $17 billion. Holiday retail sales have grown an average of 4.9% annually over the past 10 years, according to NRF.
Alabama Retail Association’s holiday growth prediction is for all taxed sales, including those from remote sellers.
Alabamians Continue to Spend, Shop Early & Smart
Alabama consumers have not stopped spending in the face of inflation and higher prices, but they continue to shop smarter and shop earlier. Looking for the best deals for their holiday purchases, consumers everywhere continue the trend of stretching their shopping budget out over a longer period. Many began holiday shopping as early as August, while others made a sizable dent in October.
“We don’t depend to heavily on any one month” out of the year, said George Wilder, owner of The Locker Room in Montgomery and Auburn. Still he said, “holiday business is certainly important to us. The gift-giving season represents about 16% of our annual sales.”
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.”
Shop with Businesses You Know & Trust for Best Experience
Shopping with retailers you trust and know can also mean getting greater value from your purchases.
“Just like we mark our calendars in excitement for the holiday season, scammers take it to a different level,” said Alex Derencz, communications manager with the Better Business Bureau® for Central and South Alabama. “While they love to operate throughout the year, this time of year is at the top of their list. If you want to make sure scammers come home empty-handed this holiday season, make sure you pay visits to trusted and reputable local businesses both in-person and online.”
>> Gus Mayer of Pizitz Management Group, BBB and Alabama Retail Association:
Support #Local Businesses
- Shop Alabama: Homewood Toy and Hobby attracts shoppers from throughout area
- ‘Christmas is probably 65% or 70% of what we sell during the year,’ says Tucker Pecan owner
- Bates House of Turkey secures pardons from governor for Gobbles and Cranberry
- Chuck’s Fish returns to in-house service for its free Thanksgiving Day feast
- High expectations for Black Friday retail sales in Decatur; ‘shacket’ big seller at Martin’s Family Clothing
- The Locker Room in Montgomery and Auburn: Helping men look their best for more than four decades
Holiday Shopping News:
- First half of holiday season shows strong year-over-year results
- GDP growth is slower but consumer spending remains positive
- Record 196.7 million consumers shop over Thanksgiving holiday weekend
- How retailers work to ease inflation’s impact on consumers
- Shop with retailers you know for the best shopping experience
- The shopping season in swing; Alabama shoppers expected to spend $18 billion
- Record number of shoppers expected during Thanksgiving weekend
- Make a Black Friday shopping plan
- Shop local, support small businesses for holidays
- Record high holiday spending predicted in Alabama
- NRF predicts healthy holiday sales as consumers navigate economic headwinds
- Seasonal workers needed to meet holiday shopping demand
- From Retail Day on, shopping events abound in Alabama
- Holiday spending in Alabama to near $18 billion
This release will be updated throughout the traditional holiday shopping months to reflect the latest sales numbers in Alabama as well as any updates from the National Retail Federation.
A version of this article appeared on Page 3
of the November 2022 Alabama Retailer
Originally posted Oct. 31, 2022
Updated Nov. 3 with NRF holiday forecast; Nov. 4 with spending numbers for Alabama through September; Nov. 17 with NRF expectations for Thanksgiving weekend; Nov. 29 with NRF survey results on Thanksgiving weekend; Dec. 5 with taxed sales in Alabama through October; Jan. 12 with Alabama taxed sales through November.