Holiday spending in Alabama should near $18.75 billion, growing 4% from last year, according to the Alabama Retail Association.

By contrast, Alabamians spent 5.6% more during the last two months of 2022 than they did during November and December of 2021.

The Alabama Retail Association’s holiday growth prediction is for all taxed sales, including online sales.

The association projects that sales will continue to grow in Alabama through the end of the year, with the pace of growth slowing to 4%, and possibly 3.5%, depending on certain economic factors, such as an interest-rate hike or government budget uncertainty.

Through August of this year, taxed sales in Alabama had grown 5.5% over the same period the previous year.

What will be the sought after items this year? Given inflation, the retail association projects that the average Alabama family will spend about $900 this holiday, with a good chunk on candy and food.

A 4% growth rate in the traditional holiday spending months would put taxed spending at $18.74 billion in our state. In the final two months of 2022, Alabamians spent $18 billion.

According to the association, some Alabama shoppers started their holiday shopping in August, with other activity beginning in October.

“The stores down the street or around the corner support your community in big and small ways daily,” Alabama Retail Association President Rick Brown said. “By shopping with retailers based in your community or our state, you contribute to the health of your local and state economies.”