MONTGOMERY-Holiday spending should be on par with or slightly under 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 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.
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. Gov. Kay Ivey has
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.
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.
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. 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.”
Holiday Shopping News
Governor declares Wednesday, Oct. 23, as Alabama Retail Day
Media Release/Nancy Dennis/Alabama Retail Association
