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Retailers will be focusing on accelerated growth this year, according to new research by the NRF Foundation and BearingPoint, Inc. (NYSE:BE) unveiled at the NRF Annual Convention in New York. The fourth annual study, "Retail Horizons: Benchmarks for 2005, Forecasts for 2006," revealed that the majority of retailers cited their mission of growth as a priority initiative. Close to three-quarters (71%) of retailer executives stated that growing existing comp store sales is their top priority.

"While cost reduction and cost retainment continue to be business imperatives for retailers, growth has moved to the forefront as top priority," said Scott Hardy, a managing director with BearingPoint, a leading global management and technology consulting firm. "Many retailers are refocusing their efforts on growth initiatives in order to drive up their comp store and incremental sales."

Other key findings of the study include:

• 41% of respondents are making 11-40% of their purchases through private label sources, with plans to increase that number to 49% in 2006;
• Retail companies with an online presence nearly doubled to 94% in 2005, up from barely 50% in 2004;
• Customer-focused decision making continues to gain momentum, as 13% of respondents had more than a quarter of their field management compensation tied to customer satisfaction results.
• Within the next 12 months, nearly a quarter of respondents plan to add e-training and another fifth plan to implement hiring technologies and self-service kiosks.

"In today's increasingly competitive environment, retailers understand that there is a heightened importance on accelerated growth and differentiation in order to set themselves apart from the pack," said NRF President and CEO Tracy Mullin. "We are now seeing retailers refocus their efforts on growth initiatives in an effort to increase sales, expand their consumer base and retain customer loyalty."

The study suggests several approaches retailers can use to provide competitive advantage and generate robust prospects for profitability:

• Differentiate through compelling and relevant assortments that exceed customers' expectations;
• Understand customers and provide the right combination of products and services in right locations to earn customer loyalty;
• Integrated personalization on web sites is essential in order to obtain and retain the more valuable multichannel shopper;
• Invest in and embrace emerging information technology, including POS and forecasting and planning technologies.

This fourth annual study surveyed more than 150 retailers from a wide assortment of department, specialty, apparel, grocery, and home center stores, with as few as a single store to more than 2,000. The study focused on eight functional areas, including information technology, supply chain, merchandising, store and field operations, advertising and marketing, customer insight, online, and human capital.

About BearingPoint, Inc.
BearingPoint, Inc. is a leading global management and technology consulting firm, providing strategic consulting, application services, technology solutions and managed services to Global 2000 companies and government organizations. We help customers achieve results by identifying mission critical issues and implementing innovative and customized solutions designed to generate revenue, reduce costs and access the right information at the right time. Our proprietary research institute, the BearingPoint Institute, demonstrates the firm's commitment to analyzing and responding to issues with a thoroughly researched and informed perspective. Based in McLean, Virginia, BearingPoint has been named as one of Fortune 's Most Admired Companies in America for three consecutive years. For more information, visit the Company's website at www.BearingPoint.com.

The NRF Foundation (NRFF) is the research and education arm of the National Retail Federation. A non-profit foundation created in 1981, the Foundation conducts industry research, develops education and workforce development programs, and promotes retailing as a career destination. The NRF Foundation benefits retailers, their associates and business partners and allies, and consumers in many ways. Research provides the basis for education about the industry and its importance to the economy, and provides industry and government leaders with an analysis of public policy decisions on consumers, retailers, and the economy. The Foundation's education and career development efforts encourage professional development and excellence in performance of retailing for associates and executives at all levels.

The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants and grocery stores as well as the industry 's key trading partners of retail goods and services. NRF represents an industry with more than 1.4 million U.S. retail establishments, more than 23 million employees - about one in five American workers - and 2004 sales of $4.1 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. www.nrf.com.