October 1, 2008

• Sales Tax Holiday success

• Strong retail sales overall

• Employment levels credited

BIRMINGHAM, Ala. - The annual Alabama state sales tax holiday capped off three straight months of retail sales growth statewide, according to the Alabama Retail Association.  In August, the month of the tax holiday, sales tax collections jumped 7.28 percent compared with the same month last year, the largest single month increase since April.  Sales increased 1.36 percent and 1.24 percent in June and July respectively. 

"What is so significant about this is that it comes at a time when much of the nation is suffering setbacks rather than increases," said Bob Robicheaux, Ph.D., chairman of the Department of Marketing and Industrial Distribution at UAB.

Robicheaux credits Alabama's strong employment levels for the state's improving retails sales.  Alabama's unemployment rate in August was a low 4.9 percent Robicheaux said compared to 7.7 percent in Mississippi, 6.6 percent in Tennessee and 6.3 percent in Georgia.  Keeping people employed keeps money flowing through the retail sector Robicheaux said.

"The strength of the retail industry in Alabama is directly supported by our state's remarkable employment rates in recent years," Robicheaux said.