We may see total UK retail sales decline this calendar year for the first time in a generation. With Christmas 2008 likely to be the toughest on record, now is the time to make your New Year's resolutions stick.

As we said in our annual Christmas Retail Survey, 2008 ended with an intensely competitive trading environment for UK retail – although the best retailers and those in the grocery and online sectors outperformed a depressed market.

In 2009, retailers are faced with all the usual challenges but in an even tougher environment where survival is less than certain. UK retailers may countenance overall negative retail sales growth for the first time in twenty years. Although we believe grocers' sales growth will be positive, many other retail sub-sectors will face the prospect of significant, possibly double digit, negative sales growth.

Figure 1. Recent trading statements.

Company

Sector

Like-for-like sales growth

Alliance Boots

Health & Beauty

1.9%

Co-operative Group

Grocery

6.0%

Debenhams

Department store

-3.3%

DSG International

Electrical

-10.0%

J Sainsbury

Grocery

4.5%

Marks & Spencer

Clothing/Grocery

-7.1%

Next

Clothing

-7.0%

Somerfield

Grocery

3.7%

Tesco

Grocery

2.5%

WM Morrison

Grocery

8.2%

Source: Company's announcements

More than ever, retailers need to focus on and prioritise their actions for 2009. The list that follows highlights ten areas which we believe retailers in pursuit of a positive ending to the year simply must resolve.

Make your resolutions...

  1. Money, money, money – Get a grip on your cash and liquidity and do some serious financial re-engineering.
  2. Location, location, location – Make your store footprint decisions based on consumer insight not property deals.
  3. Cheaper, faster, better – Squeeze the pips from your cost base and don't settle for 5-10%. It's not enough in 2009.
  4. Simplify supply chain – Take complexity out of your supply chain and let the technology take the strain.
  5. Sustainable sales growth – The customer should come first, second and last.
  6. Share of wallet – Maximise your brand to grow your share of spend.
  7. Global village – Look overseas for the most profitable growth and determine the right model for each market.
  8. Multi-channel – Stop doing multi-channel in silos and re-organise the entire business.
  9. Risk, regulation and compliance – Give risk a voice and avoid the bankers' pitfalls.
  10. Think talent – Ensure your brain count and head count tally up and people are truly fit for purpose.

Log on to www.theretailreview.co.uk for more details.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.