Change one thing for a better 2007.

Ray Allegrezza, Editor in Chief

Considering how challenging this year has been, I'm sure most of you are ready to close the books on 2006 and turn your attention to the possibilities the clean slate of 2007 may offer. But flipping the page of a calendar is not a silver bullet. Many issues the industry grappled with in 2006 will be waiting for us in 2007.

Even so, what would happen if you committed to change just one part of your business in order to improve it? Looked at another way, what about your business is likely to improve if you don't change any part of it?

Let's take a broad look at the Internet strategies currently utilized by most retailers as one possible area of your business to rethink. On a positive note, by adding click to the brick, retailers have positioned themselves to serve a broader group of customers.

But Internet initiatives often merely mirror what's available in their stores. In other words, their Web sites bring no value-added components.

Take a quick look at the Web strategies of Costco and Wal-Mart to understand why their e-business is off the charts.

Costco initially offered shoppers a tightly edited assortment of name-brand furniture in its stores. Since then, it has opened a few freestanding home stores devoted to furniture and related accessories.

But when it launched its Web site, it did something very clever. Rather than simply duplicating its brick-and-mortar mix, Costco focused its online store on higher-priced goods. This has allowed it to offer higher-margin goods, and created upper-end line extensions in categories solidly established in the stores.

Currently, Costco successfully sells a Premiere Leather four-piece power home theater set for $3,999, Sealy mattresses for $2,295 and a Grand Brittany entertainment wall at $3,199.

Similarly, Wal-Mart, known for years as the low-price provider, also is using the Web to sell higher-ticket goods. In bedding, for example, it offers a healthy assortment of better mattresses, including a Simmons model selling for over $3,000.

Rethinking your Web site is just one example of how you can enhance your business next year. Take the challenge: Commit to changing one thing about your business in 2007. And let me know what happens. I'd enjoy sharing your success in a future column.

In the meantime, have a happy, healthy and prosperous New Year!