Alabama is gearing up for a bustling holiday season, with expectations of nearing $18.75 billion in taxed spending. A report from the Alabama Revenue Department indicates a 5.6 percent increase in Alabamian expenditures during November and December of 2022 compared to the same span in 2021.
This follows a consistent rise in taxed sales throughout the state, witnessing a growth of 5.5 percent up to August 2023, compared to the corresponding period last year. Projections from the Alabama Retail suggest this upward trajectory is poised to sustain through the end of the year, albeit with a mild deceleration. The anticipated growth rate is about 4 percent, but could lean towards 3.5 percent considering possible fluctuations due to interest-rate hikes and looming uncertainties regarding the government budget.
If these predictions hold, a 4 percent surge in sales during the customary holiday spending months would catapult the state’s taxed spending to an impressive $18.74 billion. To put things in perspective, Alabamians shelled out $18 billion in the concluding two months of 2022.
The forecasted figures by Alabama Retail Association encompass all taxed sales, which includes transactions from remote sellers.
Despite the economic pressures of inflation and escalated prices, Alabamian consumers remain undeterred. They are, however, adapting their shopping habits by beginning earlier and making more informed decisions. Many are extending their holiday shopping spree, with some even kickstarting as early as August, while a significant chunk has been shopping ardently in October.
Amid this backdrop, the Alabama Retail Association is steadfast in its #ShopAlabama campaign, fervently urging consumers to patronize local retailers. Rick Brown, President of the Alabama Retail Association, articulated, “Supporting your neighborhood stores directly bolsters both local and state economies. These stores, whether around the block or a few streets away, are the backbone of our communities, enriching them in numerous ways.”
This holiday season, as Alabama gets ready to open its wallets wider than before, the message is clear – shop smart, shop early, and shop local.