Anticipated Holiday Spending by Alabamians: Alabama residents are diving into a holiday spending spree projected to reach approximately $18.75 billion in 2023. This marks a 4% uptick from the spending recorded last year, as reported by the Alabama Retail Association. Stay tuned for a closer look at all the details.
Holiday shopping in Alabama by the numbers: 2021-23
Let’s let the numbers paint the picture:
In the festive months of November and December 2022, Alabamians upped their spending by 5.6% compared to the same period in 2021.
From January to August 2023, taxed sales in Alabama saw a 5.5% boost over the corresponding months in 2022.
According to Alabama Retail, the upward trend in sales is expected to persist throughout the year, though the pace might ease to 4% or even 3.5%, depending on factors like interest rate hikes and government budget uncertainties.
If the growth maintains a steady course at 4%, taxed spending is poised to reach the $18.74 billion mark this year, surpassing the $18 billion spent in the last two months of 2022.
These projections encompass all taxed sales, including those from remote sellers.
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Shop local, #ShopAlabama
The Alabama Retail Association extend a heartfelt encouragement to everyone to rally behind the local retailers, the very heartbeat of our communities.
The stores down the street or around the corner support your community in big and small ways daily. By shopping with retailers based in your community or our state, you contribute to the health of your local and state economies.
Rick Brown, President, Alabama Retail Association
Food is a big winner in Alabama holiday spending
As per the National Retail Association, the typical family is gearing up to spend an average of $875 this holiday season. Notably, around 29% of this budget is allocated for essentials like food, candy, and decorations.
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Our Reader’s Queries
How much is the average consumer expected to spend this holiday season?
In 2023, US shoppers are expected to dish out around $985 on holiday goodies, slightly less than the $1,006 spent in 2022. Of this amount, the average planned spending on holiday gifts is $654, marking a 6.7% increase from the previous year’s $613.
What holidays have the most money spent?
Christmas, New Year’s Eve, and Valentine’s Day top the list as the most splurge-worthy holidays across the globe. Hanukkah, Kwanzaa, and Diwali also draw in a fair share of spending. Furthermore, retail holidays like Black Friday, Cyber Monday, and Singles’ Day, also known as 11.11, see some of the biggest shopping sprees of the year.
How much does average family spend on Christmas?
A recent Statista survey revealed that American families are estimating to shell out about $923 on Christmas presents in 2023, which is slightly lower than the $932 spent in 2022. This marks the highest expenditure since 2019, when the projected spending was $942.
Was holiday spending down this year?
Retail sales during the holiday season grew at a slower rate in 2022 compared to the previous years. According to the National Retail Federation, there was a 5.4 percent increase in spending. This marks a significant drop from the 12.7 percent surge seen in 2021, which was the biggest jump in at least 20 years.