When retailers think about growth strategies, they often come up with things they can directly control – the implementation of new technology, rolling out new policies or launching new products. It's crucial they realize these are just means to achieving the objective growth, and that they shouldn't be goals in and of themselves.

"The real news for 2012 is that successful retailers will be focusing their attention where it has belonged all along: on the consumer," Forbes explains. "Acquiring new customers is part of that equation, as is building tighter bonds of loyalty with those who already know (and love) your brand."

New products, discounts and policies can help, though. These are the means through which retail merchants can strengthen their relationship with consumers – a new product gives them something to get excited about, while a more lenient return policy may improve customer satisfaction. It's the small things that lead to growth.

That said, it's crucial retailers keep their profit margins in mind. Many merchants offered deep discounts during the holiday season and had to reduce their annual profit forecasts.

This entry was posted by Retail Pro on Wednesday, February 1st, 2012 at 3:00 am .