Holiday spending in Alabama should be on par with or slightly under last year – $18.5 billion, the Alabama Retail Association predicts.

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 0.5% 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.

An even growth rate in the traditional holiday spending months would equate to $18.5 billion being spent in the state during those two months.

The Alabama Retail Association’s holiday spending prediction covers all taxed sales, including those from remote sellers, during November and December.

The National Retail Federation (NRF) expects winter holiday spending to grow between 2.5% and 3.5% nationally over 2023. The NRF calculation excludes automobile, gasoline and restaurant food sales, while the Alabama Retail Association’s projection excludes only gasoline sales.

Consumers save, plan for 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 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 locations throughout Alabama, said her stores’ Christmas trees were up and decorated by late September. “We anticipate a great holiday season,” she said. 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,” Little said. “All my employees work to whatever time is necessary to fulfill orders.” The NRF expects retailers nationally to hire between 400,000 and 500,000 seasonal workers in 2024.

Little 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 business days between Thanksgiving and Christmas this year, which means consumers need to ship gifts sooner than last year.

Alabamians continue to spend, shop early

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.

The Alabama Retail Association continues its #ShopAlabama campaign and encourages consumers to shop with retailers in their communities. “The stores down the street or around the corner support your community in big and small ways daily,” said Rick Brown, the association’s president. “By shopping with retailers based in your community or our state, you contribute to the health of your local and state economies.”

This story originally was published on the Alabama Retail Association’s website.