Calhoun County, AL – As the holiday season approaches, predictions indicate that Alabama’s holiday spending will be on par with or slightly below 2023 levels, totaling approximately $18.5 billion. This projection aligns with trends seen throughout the state’s retail sector over recent years.
In 2023, Alabamians increased their holiday spending by 2.8% during November and December compared to the same period in 2022. Overall, retail sales in Alabama saw a 3.42% increase in 2023. However, the first eight months of 2024 showed a slight dip of just over half a percent in taxed sales compared to the same timeframe in 2023. This small decline is largely attributed to the reduction of the tax rate on food by 1% starting in September 2023, bringing sales tax collections down slightly year-over-year.
If spending during the upcoming holiday months grows at a steady rate similar to last year, it would result in around $18.5 billion in sales across Alabama during November and December. The Alabama Retail Association’s projection considers all taxed sales, including those from online sources, excluding gasoline. In comparison, the National Retail Federation (NRF) expects holiday spending to increase between 2.5% and 3.5% nationwide, excluding categories like automobiles, gasoline, and restaurant food.
Alabamians have shown a consistent pattern of resilient holiday spending despite challenges ranging from the COVID-19 pandemic to inflationary pressures. Over the past five holiday seasons, sales in Alabama have grown by an average of 7% each year. From 2019 to 2023, the state experienced nearly a 40% increase in holiday spending, showcasing the determination of consumers to maintain their holiday traditions regardless of economic circumstances.
Retailers have been proactive in preparing for the season, with many stocking up on holiday goods by late summer or early fall. Christie Howell, owner of Wrapsody, a popular gift store chain, noted that her stores were fully decorated with Christmas trees by the end of September, signaling confidence in a successful shopping season.
David Little, owner of Tucker Pecan Co., shared similar optimism. He has hired additional staff to meet the seasonal demand and advised shoppers to place orders early to ensure timely delivery. With five fewer days between Thanksgiving and Christmas this year, early orders are crucial. The NRF anticipates that retailers nationwide will hire between 400,000 and 500,000 seasonal workers for the 2024 holiday rush.
Many Alabama consumers are continuing the trend of spreading out their holiday shopping over several months to manage budgets effectively. Early shoppers began looking for deals as early as August, while many others completed a significant portion of their shopping in October. The focus on smart spending highlights the evolving consumer mindset toward value and planning.
The Alabama Retail Association’s #ShopAlabama campaign encourages consumers to support local businesses during the holiday season. “The stores down the street or around the corner support your community in big and small ways daily,” said Rick Brown, President of the Alabama Retail Association. He emphasized the importance of shopping with local retailers to contribute to the health of Alabama’s local and state economies.
Governor Kay Ivey also recognized the significance of Alabama’s retail sector, proclaiming October 23, 2024, as Alabama Retail Day. The retail industry remains a vital component of the state’s economy, employing 409,000 individuals—accounting for one in four private-sector jobs. Retail contributes nearly $31 billion to Alabama’s GDP, reinforcing its status as a key economic driver.
As Alabama’s retailers prepare for another busy holiday season, they are optimistic about sustaining the state’s strong shopping tradition while navigating a changing economic landscape.
