NAICS 44-45

Retail Trade in Birmingham, AL

Metro Market Score 51.8 (Challenging), ranked #161 of 378 metros. 4,353 establishments, 58,267 jobs.

Metro Market Score 51.8

Favorable 0-35

Moderate 35-48

Challenging 48-60

Difficult 60+

Challenging

ⓘ Lower is better. Relative to national retail trade average.

⚡Rising Wages

At #161 of 378 metros, Birmingham's retail trade sector scores 51.8 on the market index. Concentration (47.6), wage levels (67.2), and growth (73.3) all track close to the median. Local factors like lease costs and client access will matter more than macro signals.

Industry Concentration

47.6

LQ: 1.13

Rank #180 of 378 metros

Wage Competitiveness

67.2

$39,682 avg wage

Growth Trend

↑ 73.3

Employment growth index

Rank #102 of 378 metros

Wage Pressure

75.1

YoY wage change index

4,353 Retail Trade Firms in Birmingham

4,353

Establishments

+0.6% YoY

58,267

Total Employment

+0.7% YoY

$39,682

Average Annual Wage

+2.6% YoY

1.13

Location Quotient

Above national avg

Within Alabama

#7 of 12

retail trade metros in state

Alabama state rank

#36 of 51

for retail trade entry risk

vs State Median

0.0

matches median (51.8)

Birmingham vs Alabama Statewide

How this metro's retail trade market compares to Alabama overall. The state ranks #36/51 for entry risk.

Measure	Birmingham	AL Statewide
Overall Score	51.8 Challenging	46.4 Elevated
Score Type	Metro Market Score	Entry Risk Score
Rank	#161 of 378 metros	#36 of 51 states

Metro and state scores use different methodologies (metro has 4 QCEW-based metrics; state adds BDS survival and momentum data). Direct score comparisons are approximate.

Other Industries in Birmingham

Accommodation and Food Services 43.8 Information 50.3 Real Estate and Rental and Leasing 51.5 Construction 52.6 Other Services 66.8 Finance and Insurance 67.1

Retail Trade in Other Alabama Metros

Tuscaloosa 32.9 #14/378 Auburn-Opelika 35.6 #27/378 Decatur 37.0 #31/378 Gadsden 41.9 #55/378 Huntsville 44.8 #81/378 Montgomery 49.9 #137/378 Anniston-Oxford 52.9 #175/378 Mobile 54.9 #195/378 Florence-Muscle Shoals 61.9 #276/378 Daphne-Fairhope-Foley 62.9 #285/378

+ 1 more metros. View all in Alabama →

Retail Trade Metros With Similar Conditions

Metros within 5 points of Birmingham's 51.8 score. Useful when comparing markets with comparable entry profiles.

Altoona, PA 51.7 #160/378 Jefferson City, MO 51.7 #159/378 Twin Falls, ID 51.8 #162/378 Santa Maria-Santa Barbara, CA 51.6 #157/378 Mansfield, OH 51.6 #158/378 Boise City, ID 51.5 #156/378 Orlando-Kissimmee-Sanford, FL 52.0 #163/378 Wildwood-The Villages, FL 52.1 #164/378 Waterloo-Cedar Falls, IA 51.3 #155/378 San Antonio-New Braunfels, TX 52.3 #165/378

Retail Trade in States Bordering Alabama

State-level entry risk for retail trade in adjacent states. Use this to weigh cross-border options.

Tennessee 42.8 #22/51 Georgia 47.5 #38/51 Florida 51.0 #43/51 Mississippi 59.2 #51/51

Browse Retail Trade in Other States

State-level entry risk reports for retail trade across all 51 markets, sorted by rank.

About Metro Market Score: A weighted composite of industry concentration (25%), wage competitiveness (25%), wage pressure (20%), and employment growth trend (30%). Lower scores indicate more favorable conditions. For Birmingham's retail trade sector, the wage competitiveness component (67.2) has the strongest pull on the composite. Metro scores use QCEW data only (no BDS survival data at metro level). Read full methodology →

Data Sources

Quarterly Census of Employment and Wages (QCEW), Bureau of Labor Statistics. MSA-level establishment counts, employment, wages, and location quotients for the Birmingham, AL MSA area.

Data period: 2024. Last updated: April 2026.

Metro Market Assessment