Holiday spending to near $18 billion in Alabama

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.”

>> BBB® tips for Smart and Safe Holiday Shopping

> Bromberg & Co. Inc. , BBB, and Alabama Retail Association:
Support #Local Businesses

>> Gus Mayer of Pizitz Management Group, BBB and Alabama Retail Association:
Support #Local Businesses

Retailer Features

Holiday Shopping News:

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.