In fact, nearly three-quarters (71 percent) of retail executives have made growing comparable store sales their top priority this year, said the foundation’s fourth annual study, Retail Horizons.

“While cost reduction and cost retainment continue to be business imperatives for retailers, growth has moved to the forefront as top priority,” said Scott Hardy, managing director for BearingPoint, a management and technology consulting firm. “Many retailers are refocusing their efforts on growth initiatives in order to drive up their comp store and incremental sales.”

“In today’s increasingly competitive environment, retailers understand that there is a heightened importance on accelerated growth and differentiation in order to set themselves apart from the pack,” said Tracy Mullin, NRF president and chief executive officer. “We are now seeing retailers refocus their efforts on growth initiatives in an effort to increase sales, expand their consumer base and retain customer loyalty.”

The study suggests several approaches retailers can use to gain a competitive advantage and generate robust prospects for profitability:

• Differentiate through compelling and relevant assortments that exceed customers’ expectations.
• Understand customers and provide the right combination of products and services in the right locations to earn customer loyalty.
• Invest in and embrace emerging information technology such as that for point-of-sale, forecasting and planning.
• Use integrated personalization on Web sites to obtain and retain valuable multichannel shoppers.

The study surveyed more than 150 retailers from a wide assortment of department, specialty, apparel, grocery, and home center stores, with as few as a single store to more than 2,000 units. To purchase a copy, visit the NRF online bookstore at www.nrf.com/bookstore. [March 2006 PET AGE]