2021 Holiday Spending In Alabama Hits Record

MOBILE/BALDWIN COUNTY, Ala. — Alabamians spent a record-breaking $17 billion in November and December 2021, according to the Alabama Retail Association. Sales in the traditional holiday shopping months grew 15.4% compared to the same months in 2020. Sales tax collections for all of 2021 grew more than 17% over 2020, based on state records. The spending total is based on sales tax collections on general merchandise, restaurant and other food service, automobiles, machinery and vending, plus collections made through the state’s Simplified Seller Use Tax. As Alabama Retail predicted, holiday sales grew by double digits for the second year in a row. Taxed holiday sales in 2020 grew 11.6% over 2019. The growth rate for 2022 is expected to moderate as federal benefits wane, consumers spend more on services, and the Federal Reserve raises interest rates, according to the report.