Perhaps the worst thing any retail merchant can encounter is not having enough product to satisfy consumer demand. This essentially means the company did everything right, from promoting goods to offering a compelling shopper experience, but because the brand didn't have enough stock of a particular item, it ends up losing out on a sale.

Unfortunately, this is becoming more of a reality for ecommerce retailers. Online shopping has picked up considerably over the past decade and mobile devices have further accelerated this trend. According to the Retail Industry Leaders Association (RILA), web sales have climbed more than 15 percent to $35.3 billion and will continue to grow 10 percent annually.

The rise in sales means retail brands will be shifting more inventory and they will need to diversify their supply chain to keep up. Using a variety of sources to ship goods to products will help them ensure they are never out of stock and unable to meet the needs of their customers, the organization asserts.

"Consumer expectations are changing, and as a result, retail business models are changing," RILA executive vice president of retail operations Casey Chroust said. "Traditionally, retailers have used separate operational models to move goods and fulfill orders. Now those models need to be merged so that companies can continue to deliver the products consumers want across any channel without losing efficiency or adding cost."

However, multichannel operations will also present retailers with myriad challenges. Variations in shipment sizes, order filling processes and delivery methods, as well as inconsistent stock-keeping units, are expected to be the leading obstacles, with less than 18 percent of retailers offering the same SKUs across all channels.

"The real challenge for today's multichannel retailer is to become channel agnostic and fulfill demand effectively regardless of order type or origin," stated Brian Gibson, professor of supply chain management at Auburn University. "As sales volume grows in nontraditional channels, achievement of technology integration, operational flexibility and process visibility will separate the leaders from the pack."

Digital media has already changed the way many merchants do business, with a number of brands making heavy investments in retail software and other technology to further enhance their online efforts.

One of the best ways to improve the customer shopping experience is by employing more associates to help them, regardless of whether they are positioned as greeters when customers enter the store, salespeople to assist them or cashiers. Many merchants know this, which is why they are hiring new employees, according to a new report from Kronos.

According to the recently released Kronos Retail Labor Index, hiring increased by 7 percent year-over-year in February, hitting 4.2 percent. However, the supply of retail applicants has dwindled, with the number of applications declining by 1.3 percent – a 6 percent year-over-year decline.

"Retail firms in the Kronos sample have faced modestly tightening hiring conditions in recent months, as the pool of applications for each hire made has contracted," said Chris Varvares, senior managing director and cofounder of Macroeconomic Advisers, a firm that analyzes the report.

In addition to hiring more employees, many merchants are hoping to further bolster store operations by employing new technology. Some choose to equip their associates with iPads to look up product inventory, while other use retail software to expedite the checkout process.

Recognizing conservative consumer spending habits, many U.K. retailers are cutting prices to keep sales up, a new report from the British Retail Consortium found.

Price inflation slowed to the lowest recorded figure in the past two years in February, particularly among specialty clothing and electrical-goods stores. Overall, prices were up 1.2 percent year-over-year – down 1.4 percent from January and representing the smallest increase since March 2010.

By keeping prices low, U.K. retailers hope to boost demand and lure shoppers out of their homes, Bloomberg Businessweek adds. Many feel the combination of the sluggish economic recovery and rising unemployment are driving down consumer sentiment.

"Promotional activity has been sustained over the last three months as consumer confidence remains fragile," Mike Watkins, senior manager of retail services at Nielsen, told the news source. "Retailers are having to work hard to encourage customers."

In the United States, consumer sentiment has similarly declined. After three months of gains, new research from Consumer Reports found it slid 3 percent in March.

Daily deals sites such as Groupon have been the subject of much controversy in the retail segment. While most merchants have noted that they can gain a significant influx of new shoppers by launching daily deal promotions, others have been quick to point out an adverse effect in store operations: The heavy discounts hurt profits.

New research from ForeSee suggests these one-time deals can be beneficial in the long-term scheme of things. Approximately half of shoppers who use daily deals said they have returned to the retailers that offered these promotions, while another 47 percent plan to do so in the future. The survey results are based on the response of more than 10,000 consumers.

Meanwhile, four in 10 consumers who took advantage of daily deals are already fans of the merchant offering the promotion, whereas 26 percent were infrequent shoppers and 29 percent had never heard of the brand. This challenges the notion that daily deals are ideal for generating new customers, and in fact they seem to be just as effectively used for instilling feelings of loyalty.

"Businesses that use these sites effectively are growing their customer base and customers are getting a deal, which results in a win for everyone. The challenge is for businesses to use this tool in smart ways and to work with daily deal sites who can deliver a good experience to users and merchants alike," explained Larry Freed, the president and CEO of ForeSee.

When offering daily deals, there are two market leaders – Groupon and LivingSocial. Combined, these two sites account for approximately 80 percent of the deals market. Fifty-two percent of customers surveyed subscribe to Groupon, while 30 percent opted for LivingSocial. Groupon's market share was up 1 percent, while LivingSocial's grew from 24 percent.

More recently, half the respondents had bought a Groupon voucher in the last 90 days, marking a 6.4 percent improvement from last year. Meanwhile, one-quarter of survey takers purchased a LivingSocial deal, up 13.6 percent from 2011. Despite this growth, the number of consumers subscribed to daily deal sites declined from 65 percent to 60 percent, suggesting that Groupon and LivingSocial are forcing their competitors out of the market.

Marketing is only one part of successfully managing a retail brand. Maximizing store operations requires a mix of advertising, customer service and business know-how.

The value of retail properties is on the rise as the sector continues to grow, according to a new report from Marcus & Millchap, Savills U.S. and Colliers International.

Retail sales now exceed pre-recession figures, which has led to performance improvements in the retail property sector. Low interest rates and attractive returns are expected to keep transaction velocity on the upswing. Favorable conditions will drive owners to list more assets, the report adds.

"Marginal improvements in second half of 2011 leave most cautiously optimistic about 2012," associate Gerry Mason said in the Savills report, although he added that "slow recovery is expected as most companies will look to improve balance sheets and strengthen core portfolios."

Grocery-anchored and outlet centers are leading activity. However, most movement will be driven by the companies that can innovate and offer new shopping experiences.

Brick and mortar stores are expected to be the corner stone of the retail shopping experience for a number of years to come. As a recent report from Forrester Research suggests, ecommerce currently accounts for less than 10 percent of total retail sales.

One of the easiest ways retail brands can lose customers is by making them wait forever during the shopping process. Whether they are waiting in line to make a purchase or are dealing with customer service, there are a number of ways to reduce hold times, Multichannel Merchant reports.

First, retailers should consider giving their employees more power. While management should be involved with any big decision, forcing customers to wait because employees need a trivial override is inefficient.

Second, merchants should develop a knowledge base that can be easily accessed by employees. This will reduce time spent waiting for managers to answer common or basic questions.

Finally, the source suggests retailers should "have zero tolerance for agents who put customers on hold so they can chitchat with their neighbors."

Many customers feel they already spend too long during the point-of-sale checkout process. By streamlining operations and making it quicker, retail brands are better able to keep their shoppers happy and encourage future visits.

Last summer, online and mail-order video company Netflix angered customers with new pricing and management plans, serving as an example for retailers' store operations.

In July, the company announced it would be raising prices by nearly 60 percent for users who access videos both online and through mail, Bloomberg notes. Additionally, the company was attempting to force customers who wished to receive DVDs via mail only to sign up with its new brand Qwikster.

As a result, the company lost 800,000 customers in the third quarter of last year. Reflecting on the damage the plan was having on its reputation and revenue, Netflix backed away from the plan. In the fourth quarter, it reversed its fortunes by adding 610,000 customers, according to Bloomberg.

"We are the first to admit we did have some missteps," Steve Swasey, a spokesperson for Netflix, said in an interview with the news source. "It's ours to gain back." Part of this new plan is allowing consumers to sign up for the $7.99 per month DVD-only service.

Retailers looking to avoid the fate of Netflix may want to consider their consumers in their plans, possibly through soliciting their desires and concerns before any changes are made.

A new report from Colliers International, called "The U.S. Retail Highlights: 2012 Outlook," notes some relevant trends that retail merchants should consider as they plan for the upcoming year.

First, it's important retail brands realize that sales aren't expected to jump as much as they did last year. While they will still improve in 2012, they will do so at a slower pace. According to a report from the National Retail Federation, new sales will be up 3.4 percent in 2012, compared to the 4.6 percent increase observed last year.

Ecommerce will also continue to play a pivotal role, Inc. magazine notes.

"Ecommerce will grow exponentially, both in the way products are offered and purchased – with the latter seeing an influx in transactions via mobiles and tablets. Mobile sales this year are projected to climb 49 percent to $10 billion as retailers are seeing such devices as a bridge between their online and offline operations," the news source explains, citing the report.

A separate report from comScore further illustrates the growing value of ecommerce – during the fourth quarter alone, online shopping was up 14 percent to $50 billion.

Walmart took a gamble during the 2011 holiday season, giving shoppers the lowest price on any given item, regardless of when they purchased in the holiday season. The tactic had mixed results – while the retailer's revenue declined 15 percent year-over-year, it also gained customer traffic for the first time in several years.

The international retail chain accounts for approximately 10 percent of all nonautomotive retail sales, which means customers in general are looking to shop more – provided they are getting the best deals. Net income was approximately $5.1 billion for the three-month period ending on January 31, with new Walmart stores enjoying a 1.5 percent revenue increase.

"Core customers remain cautious about their finances," said Mike Duke, president and CEO of Walmart Stores. "They rely on Walmart's (everyday low price) promise to help them manage through today's economic challenges."

Some retail chains made note of Walmart's promotion and are trying to incorporate that into their operational plans. For example, JCPenney recently began offering specific sales days year-round to generate consistent in-store traffic.

While a number of consumers are still looking to use their tax refunds for retail purchases, many will be saving their money for future purposes, a new report from the National Retail Federation and BIGinsight suggests.

Nearly half of Americans (43.8 percent) expecting refunds will save some of their money, which is an increase from the 42.1 percent who said the same last year. As the NRF notes, this is the highest number of Americans looking to conserve their refunds in the nine years the survey has been given. Approximately two-thirds (66.2 percent) of taxpayers are anticipating a refund this year.

"After a rocky few years, consumers are now more vigilant about how they spend their money and the importance of preparing for future financial stability," said NRF president and CEO Matthew Shay. "Increased consumer savings proves extremely beneficial to shoppers and businesses in the long run, allowing future opportunities to invest in a large household item or even take advantage of a well-deserved family vacation."

That isn't to say all Americans are saving their money – 12.3 percent said they will use their refunds for a big purchase, such as a television. Retailers hoping to capture some extra sales may want to consider launching a tax refund promotional event.