The supply chain is a crucial part of retail management – an effective supply chain can make the difference between having inventory at the right time or missing out on crucial sales. Michael Noon, the executive vice president and chief operating officer at Yusen Logistics, told the National Retail Federation that now is the perfect time for retailers and their suppliers to hash out new terms for their contracts.

"Both parties need to continue the dialogue to help cover fluctuating costs," Noone explains. "This is especially important when it comes to fuel so that the cost exposure is not borne solely by the carrier. Both parties also need to work together to manage multi-year contracts and discuss rate changes to reflect not only market changes (rates going down) but also cost changes (that usually go up)."

Going forward, Noone expects collaboration and communication to be more important in supplier relationships. New technology will enable third-party suppliers to share information with each other, giving retail merchants more insight into how their inventory is being moved across the world.

Shipping container volume is already up this year so far, which could indicate a boost in confidence among retailers. With more volume, however, comes more complexity, which highlights the importance of having a better supplier relationship.

Consumer confidence levels are key to a profitable retail sector. When shoppers are optimistic, they tend to loosen their purse strings and spend more money at retail. Conversely, when the economy goes south and they aren't as confident, they frequently scale back spending.

Several retailers based out of the United Kingdom recently commented on the status of consumer confidence in the U.K. They all agree that consumer optimism is low and will continue to remain that way. In order to stay on top, retailers will need to develop new ways of bringing in customers – and that means more than simply offering discounts.

"We always knew this was going to be a bumpy road of slow growth," Mark Price, managing director of Waitrose, told Retail Week. "Retailers need to focus on delivering good value, not just low prices.

"The biggest danger is consumer perception," Theo Paphitis, owner of Boux Avenue, added. "The worry is it will impact consumer confidence which is really borne out of unemployment levels."

Conversely, consumers elsewhere in the world are growing more optimistic. For example, American consumer confidence recently hit a four-year high.

Citing data released Tuesday by Statistics Canada, Fox Business reports that Canadian retail sales unexpectedly dove in February – the first time they have done so since July 2011. According to the research, sales volumes shrank 0.2 percent to C$38.91 billion – US$39.26 billion – which was scaled back from the original 0.5 percent decline the organization estimated.

Industry analysts suggest the issue lies with consumer spending, which didn't spur growth as much as many retailers anticipated it would.

"The gain will clearly be driven less by consumer spending than previously suspected, and it also points to downside risk [to the Royal Bank of Canada's retail forecast]," BMO Capital Markets deputy chief economist Douglas Porter said in a report.

Sectors that noted a decline include the automotive industry, food and beverage stores, convenience stores and beer and wine stores. Retail merchants selling building materials and garden equipment, on the other hand, saw improved sales.

When sales are down, merchants should take another look at store operations. By revising policies and procedures, they will be better able to sustain themselves despite fewer sales.

Retail Pro International has announced a strategic alliance with Retail Smart Guys, a specialty retail consulting and planning advisory company. Dan Jablons, owner and operator of Retail Smart Guys, a long-time Retail Pro® supporter, will be pivotal as Retail Pro International aims to create customer consulting programs to foster a new pedigree of retailer.

“Leveraging our Retail Pro retail management software and services with Retail Smart Guys' planning guidance will go a long way to ensure the success of any merchant in our ecosystem,” commented Mike Bishop, the Vice President of Business Development at Retail Pro International. By utilizing the services and products of both Retail Pro and Retail Smart Guys, merchants will be better informed about their businesses and markets while gaining access to crucial data and retail management tools that will drive growth, profitability and long-term success for their business.

Dan Jablons is an experienced retail advisor, with a client list spanning dozens of high-profile specialty retailers. Jablons offers his clients expertise in pivotal retail functions, including accurate forecasting, marketing, sales, technology and social networking.

Retail Pro International is currently working to introduce new services that will capitalize on this newly forged alliance. ”We are thrilled to be partnering with such a performance-driven organization in the retail space and believe this collaboration will provide the retailers with the resources and expertise they truly need to succeed. It's the ultimate win-win-win situation for all involved,” added Dan Jablons, the owner of Retail Smart Guys.

Despite declining sales over the past few years, the Irish retail sector is slowly beginning to turn itself around, according to a new report from Retail Excellence Ireland.

Sales in January were down 5 percent year-over-year and overall sales per square foot in the first quarter also declined significantly compared with the same time in 2011. However, encouraging signs were observed in March, when sales climbed by 0.7 percent, suggesting Ireland's retail sector may be bouncing back from the recession.

''March 2012 returned to like for like growth helped by a spell of good weather. The big ticket discretionary sectors remain in greatest distress,'' Retail Excellence Ireland's chief executive David Fitzsimons told RTE News.

Hot beverages and pharmacies proved to be the best-performing retail categories, while furniture and flooring were among the bottom of the list, both down by 10 percent.

If merchants are having difficulty meeting sales numbers, they may want to consider revising store operations and diversifying their product lineup. This could help them reach new shoppers and further buoy sales.

Despite rising fuel costs and grocery prices, American consumers are still optimistic about the economy. A recently released Bloomberg report shows that household confidence improved last week to match the highest level in the past four years, which can only mean good things for retail merchants.

The Bloomberg confidence index was observed at minus 31.4 points during the week ending April 15, a 1.4 point improvement compared to the previous seven days. The 31.4 reading is the highest since March 2008, insinuating that the retail sector is on its way to emerging out of the recession-era doldrums, Retailing Today notes.

However, economists were quick to note that many Americans are still unemployed, which may put a damper on expectations.

"The uneven nature of the recovery will likely continue to restrain the type of improvement in consumer sentiment that one would traditionally observe at this point in the expansionary cycle," said Joseph Brusuelas, a senior economist at Bloomberg LP in New York.

Retailers looking to drive in-store traffic, despite the cost-conscious consumer mindset, may want to consider offering discounts. This will make it easier to justify shopping, despite higher commodity prices.

According to a new report from KPMG, the strength of the retail sector in India is waning due to the closure of several big-name brands. In 2008 and 2009 – the era hailed as the peak of the retail industry in the country – there were more than 4,500 retail stores. As of now, however, that number has shrunk to 2,900, a decline of approximately 38 percent.

Most of the decrease took place in 2009 and 2010, when retail powerhouses such as Subhikhsa went under. While things have stabilized in 2011 and 2012, the sector has shown relatively flat growth, suggesting conditions could still improve.

"It's not an easy business to be in and every retailer in the country is revisiting [their] strategy. In this phase of consolidation, retailers are looking at improving supply chain efficiencies, experimenting with formats that work best," Sandeep Gupta, managing director at Protiviti, told the Hindustan Times.

Retailers looking to bolster efficiency should consider leveraging retail software solutions. This can help them identify potential weak points while further streamlining store operations.

In the first quarter of 2012, the number of British consumers performing retail searches from tablet devices grew 11 percent compared to the same time a year earlier, highlighting the importance of considering these devices as retail merchants plan their engagement tactics.

Meanwhile, total search volumes from overseas shoppers were up by 57 percent during the first quarter, peaking in January. In particular, the health & beauty and food & drink categories saw the biggest growth, up 21 percent year-over-year.

Many consumers are using these devices to check out what prices are at various retailers, ensuring they get the best price. Retailers should take note and employ practices to prevent them from losing sales to less expensive competitors.

"Squeezed household budgets mean customers are turning more and more to the internet to research what they're buying and look for best value," Stephen Robertson, director general and British Retail Consortium, said.

Many American retailers are already using price-matching policies to give mobile-savvy customers a reason to buy with them instead of the competition. Merchants around the world may want to consider similar tactics.

Unusually warm weather encouraged more British shoppers to leave the house and spend money, according to a new report from the British Retail Consortium's monthly health check.

Overall sales activity was up 3.6 percent in March compared to the same time last year, with U.K. men driving the majority of the spending influx. Stores selling footwear, clothes and outdoor leisurewear noted the biggest year-over-year increase, The Guardian adds.

"The unusually warm weather in March brought some welcome sunshine into the lives of non-food retailers," Stephen Robertson, the BRC's director general, explained. "The early signs of summer got people buying clothes and shoes for the new season. Gardening items and outdoor leisure also saw a lift."

However, the report also pointed out that the increase in floor space over the past year suggests retail sales should be even higher. It's paramount that retailers not look too far into the results of a single month and continue to plan accordingly.

Similar weather conditions in the United States sparked retail sales as well. Likewise, men also appear to be shopping for clothes more frequently.

Rather than conducting a greater number of transactions online, many shoppers are spending more money per order less frequently, new research from Dydacomp suggests.

The Dydacomp SMB Index, prepared for Internet Retailer, suggests the number of online transactions has declined by 7 percent while simultaneously, total expenditures have grown by 4 percent. This data was compiled by observing more than 1.7 million orders per month at upward of 1,500 ecommerce retailers.

In particular, books, sporting goods and auto parts were the big gainers. Only tobacco and alcohol products are selling less often online.

"The index showed a slight decline in sales, 0.84 percent, last month compared with March 2011, while year-to-date sales through March increased 3.85 percent year over year," the news source added.

Online shopping has changed how many retail merchants conduct store operations. Now many brands are offering price matching initiatives to encourage shoppers to spend in-store rather than buying goods online.