At CES, the CEA told press that a CEA/GfK study expects CE retail sales will hit the $724 billion mark in 2009, up 4.3% compared to 2008. Yet 2008 sales were up 13% over 2007, so that’s nearly 9% we’ll lose.

At On CE, we’ve been consistently telling our readers to expect at least 10% less in sales; and we mean 10% less than 2008 sales.

While the CEA/GfK study predicts increases in all the major product categories for next year, much of this growth will not come from the traditional markets (No. America, W. Europe and Japan.) The way the math goes, if emerging markets were up 15% and the world average still only reaches 4.3%, then someone, somewhere must be down -11.3%. That someone may be you and me so here are a few suggestions for retailers and distributors for 2009.

Take higher margin in less price-sensitive categories Ranking product categories based on purchase frequency is a fast and inexpensive method to identify categories least sensitive to higher pricing. For higher-priced products, shoppers are more likely to shop around for the best deal but less likely to remember pricing on products purchased only once or twice per year.

Create your own bundles. We do far too few bundles in our industry. Consumers want to assurance by the retailer that technology is compatible and what says compatibility more than “Here’s our bundle we put together for you.” Combining hardware/software /accessories and peripherals will attract attention and move product. It’s a different strategy in this environment than the usual “Sell the hardware, then sell the add-ons.” Especially exploit areas on known compatibility issues for consumers.

Tie discounts to larger purchases or frequent shoppers Consider offering hot prices for shoppers with a 100 euro purchase. Maybe a new-release DVD. You want to motivate shoppers for allegiance and keep ‘em coming back.

Expand beyond your channel’s traditional product mix Not reckless expansion, but it’s time for distributors and retailers to look wider. Maybe the business you think you are in has already changed. Start with a little customer research. Read Bob’s story… The Baker and the PC Dealer

Maintain competitive pricing in most visible categories Customers recognize a high price on the products they buy more often (or big-ticket items that they price shop.. To highlight your low prices, retailers need to keep high-velocity items priced competitively, even if these prices are subsidized by less price-sensitive items.

Own Store Brands vs Premium Private Label Consumers can appreciate store brands positioned as a low-cost alternative to a national brand (traditional role of most private label products). More retailers are developing premium (yes, even multi-tiered store brands). As the economy recovers, retailers will want to be known for more than just low prices.

Make a good impression on new shoppers The retailing environment is changing faster than ever. The struggling economy has a significant effect on how and where consumers shop, with people willing to switch both brands and retailers. Now is not the time to cut corners on anything that could reduce the shopping experience. Don’t let checkout take too long. Change the window displays. Treat every shopper like it’s their first time in your stores.

Train, train…then train some more It is a mistake to assume vendor training satisfies your staff needs. While product training is helpful, single-brand product training can be time-consuming and, in some cases, counter-productive. You need independent training that builds a knowledge base, plus store-culture training that lays down your own rules of engagement.

Retain good staff Learn from Circuit City’s classic mistake. Lose good people in this environment and you’ll end up short-Circuited.

Go, if you haven’t read it yet, The Future of Consumer Electronics