Holiday spending should be on par with or slightly more than last year – $18.5 billion.
Alabamians 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 10 months of 2024, taxed sales in Alabama grew about half a percent compared with January to October 2023, based on Alabama Revenue Department abstracts. That puts overall sales so far this year about level with 2023.
Source: Alabama Revenue Department
An even growth rate in the traditional holiday spending months would equate to $18.5 billion being spent in our state during those two months. Growth in September (4%) and October (6%) taxed sales could create momentum for a percentage or more uptick in holiday spending in our state.
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. The number of shoppers on the long Thanksgiving weekend exceeded NRF’s expectations. The estimated 197 million shoppers is the second highest number in the survey’s history after last year’s record of 200.4 million, and surpassed NRF’s initial expectations of 183.4 million shoppers.
Retailers have the trees up and holiday goods out by late September for shoppers who continue to spread their holiday spending over fall and winter.
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. 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. Christie Howell, owner of Wrapsody, a gift store with five stores throughout Alabama, said her stores’ Christmas trees were up and decorated by late September. “We anticipate a great holiday season,” she said in the November cover story of Alabama Retailer. Retailers throughout the state are ready for holiday shoppers.
David Little, who owns Tucker Pecan Co., hires extra staff during the holiday season. “We work hard” during the holiday season, said David. “All my employees work to whatever time” is necessary to fulfill orders. NRF expects retailers nationally to hire between 400,000 and 500,000 seasonal workers in 2024.
David suggests getting orders in early to have them shipped from his stores as gifts – by Nov. 1 for Thanksgiving and by Dec. 1 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 & 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. From Thanksgiving through Cyber Monday, the average amount spent on holiday gifts was $235, according to NRF. 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.”
Retailer Features
Sisters who own Fantasy Island Toys prepare for the holiday rush
Top-notch customer service sets local stores apart, says Fantasy Island Toys owner
After 72 years, Alabama’s Tucker Pecan Co. sees sweet success with two new locations
Kind Cafe is an Alabama mission-driven shop that puts people first, kindness always
Shopping local on Small Business Saturday means service and sense of community, said Little Hardware manager
Wrapsody is an Alabama retailer on a growth tear and ready for the holiday season
Saw’s: An award-winning Alabama BBQ restaurant started by a classically-trained chef
Fairhope’s mission-driven Kind Cafe off to a good start
Alabama governor pardons Bates House of Turkey’s Gobbler and Cobbler at 76th annual turkey pardoning
Christmas continues to generate the most sales at Tucker Pecan Co. in Montgomery and Wetumpka
Dressed for success: The Locker Room in Tuscaloosa celebrates 60 years in business
Vestavia Hills’ The Lili Pad and Gigi’s purchased for ‘an extremely, extremely positive holiday season’
Alabama Goods, Sikes Children’s Shoes/Jack n’ Jill, Three Sheets and Once Upon a Time among the stores that make downtown Homewood, a holiday shopping destination
Get in the spirit at the biggest Christmas store in Alabama: Robert Moore & Co. Christmas Town & Village Collectibles
Holiday Shopping News
National economist says ‘conditions are shaping up for a successful holiday retail season’ (NRF, Dec. 5, 2024
Governor proclaims Small Business Saturday, calls on Alabamians to join her in shopping local (governor.alabama.gov, Nov. 26, 2024)
Thanksgiving, Black Friday and Iron Bowl merge into big week for Tuscaloosa (Tuscaloosa News, Nov. 25, 2024)
Retailers hope Alabama shoppers turn out for “Black November” (Alabama Public Radio, Nov. 22, 2024)
National survey reveals top toys and gifts for the winter holidays (NRF, Nov. 21, 2024)
How warmer fall temperatures impact retail (WBRC, Nov. 20, 2024)
Record number of shoppers expected over long Thanksgiving weekend (NRF, Nov. 14, 2024)
Census data for October shows ‘healthy’ retail sales and ‘early step forward’ into the holiday season (NRF, Nov. 15, 2024)
Decatur businesses anticipate a lucrative holiday sales season this year (Decatur Daily, Nov. 8, 2024)
Holiday spending in Alabama: Experts recommend buying early and buying local (Alabama Public Radio, Nov. 7, 2024)
Economic growth continues to point to a successful holiday season despite mixed signals (NRF, Nov. 7. 2024)
Forecast: Holiday spending in Alabama to closely match last year (Alabama News Center, Oct. 30, 2024)
Forecast: Holiday spending in Alabama to match last year (Quad Cities Daily, Oct. 25, 2024)
Alabama retailers project about $18.5 billion in holiday spending this year (al.com, Oct. 24, 2024)
Alabama holiday shopping expected to match last year (WSFA 12 News, Oct. 23, 2024)
Alabama holiday spending expected to match last year’s $18.5 billion (Calhoun Journal, Oct. 23, 2024)
Governor declares Wednesday, Oct. 23, as Alabama Retail Day (Governor’s office, Oct. 21, 2024) – Video ( Alabama Retail Association, Oct. 22, 2024)
NRF: 2024 holiday spending expected to reach new record (NRF, Oct. 22, 2024)
Steady sales growth expected for 2024 holiday season, according to NRF (NRF, Oct. 15, 2024)
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 can be found on Page 3
of the November 2024 Alabama Retailer
Originally posted Oct. 17; updated Nov. 8 with Alabama sales performance through September; updated Nov. 14 with NRF’s Thanksgiving weekend shopping survey, updated Dec. 3 with NRF Thankgiving weekend results; updated Dec. 5 with NRF third quarter results