With internet sales over the 2006 Christmas period up more than 40 per cent on 2005, according to preliminary figures, it’s clear that the dreams of e-tailing we heard about in the early part of the century are coming true. Only it’s panned out a little differently than expected.

With conventional methods drying up, retailers now need to look to brand differentiation and overseas expansion to boost revenues.

Roll-outs have been the strategy of choice for most private equity houses: as a means of creating value, they are hard to beat.

The combination of a credit crisis and continual falls in high-street spending is making debt financing an elusive beast.

If there was a big year for private equity in the retail sector, 2004 was it. A handful of private equity houses, primarily in the UK, had steadily been building their retail exposure – a sector that had been considered too risky and reliant on the whims of consumers.

There’s no doubt that the retail sector is in for a rough ride in 2008, but certain areas will be insulated from the rash of profit warnings and insolvencies.