Increasing sales, differentiating product assortments, retaining customers and cutting costs are the top priorities for retail executives in 2007, according to the Retail Horizons study, which was developed by the NRF Foundation and Wells Fargo Retail Finance and discussed at the National Retail Federation’s annual conference in New York.

Growth — About 59 percent of merchandising executives said driving same-store sales increases was a key focus, while 68 percent said increasing market share was a key initiative. Nearly three-quarters of online executives said increasing online sales was a top focus.

Differentiation — Differentiation of product offerings is the second most important strategy and challenge for 2007, according to the survey, which found that 18 percent of merchandising executives said they will focus on implementing an assortment-planning process this year.

A growing number of merchandisers said they will develop micro-merchandising strategies, while supply-chain and merchandising executives projected an increased focus on global sourcing compared to last year, the study found.

Customer service/retention — Customer retention or reactivation will continue to be the first priority for 59 percent of customer relationship management executives in 2007, up from 50 percent last year.

About 82 percent of store and field operations executives will change sales associate procedures based on customer satisfaction surveys, the study found, noting that employee training is the No. 2 priority for store and field operations executives.

Cost containment/reduction — Labor scheduling is the third most important priority for store and field operations executives for 2007. About 46 percent of human resources executives chose employee retention as the most important initiative of the year.

Distribution network optimization, warehouse management systems and vendor management are projected to be the top 3 strategic initiatives for supply chain executives.