So, the squeeze, the pinch, the slowdown - hey, let's be original, even the credit crunch - is well and truly upon us. Angst and apprehension has descended on the country's high streets; consumers have locked up their credit cards, battened down the hatches and retreated to wholesome, retail-free pastimes. Or have they?

Well if you read any of the tabloids, you'd be forgiven for thinking this is one of the rosier pictures, such is the appetite for doom-mongering at present. And, certainly, if you care to invite a retailer along for a beer after work, don't expect an evening of revelry. Retailers, you see, are currently caught in the frontline of the credit crunch.

This is one thing that is true. Retailers are in the vanguard of the supply chain; when times get hard, they're the industry's barometer and yes, they often feel the first waves of an impending downturn. So, perhaps there is some justification for the long faces; after all, it can't be much fun facing the frightening prospect of an economic tsunami. Customers just aren't beating a path to their door anymore, they will tell you. The wicked internet has come along and stolen all their business. And to cap it all, there's out-of-industry retailers such as Next, making a bid for the kitchens and bathrooms business.

Hmm. It's tempting to feel for them, but I'm not sure how much I do. The end of the independent retailer? I doubt it. A shake up? Unquestionably. You see, it's times like these that sort the wheat from the chaff. But hasn't it always been so? I canvassed a handful of industry friends and the opinions were revealing. While their businesses were yet to see any discernible slowdown, they tellingly commented that the quality of retail can leave much to be desired. There are retailers out there that won't invest in staff training, fail to manage product displays and who won't invest in marketing. Without a doubt, these are the retailers that - now we're not all emptying our piggy banks every weekend - are vulnerable.

Best practice

On the flip side, there are clearly retailers who are better equipped to sail through this period unscathed. Those that nurse the customer, hold their hand and effectively offer a welcome mat to warranty service - in other words, complete turnkey providers - stand a much better chance of keeping their heads above water.

Unquestionably, supply and fit is a sector of the market that has the right ingredients to stay successful while others flounder. These are the retailers willing to wave their staff off on distributor and manufacturer training days, whom recognise the value of fluid, changing shop displays, imaginative marketing and who, eight times out of 10, will commit to better quality products and brands. These guys are the ones likely to maintain strong order books. On the other side of the fence, those that do not subscribe to any of these things get exposed when times get tough. Back to one of my industry contacts, whose summing up of the situation was succinct - there's not enough of the best and there's a big gulf between the best and the rest.

Historically, our industry looks to the property market for an explanation of its fortunes. The two schools of thought traditionally wheeled out when a slowdown beckons - that during a credit crunch consumers don't move, but instead do their homes up - or that when consumers do move, they immediately sort their kitchens or bathrooms out, fail, in my opinion to take into account a changing landscape of modern-day factors, not least the rise and rise of the internet.

Now, I'm not about to hijack this month's column with an impromptu discussion of internet sales, but we do need to recognise - once and for all - that retailing is no longer simply a physical shop door. Let's take a quick look at some figures. Over Christmas 2007, Marks & Spencer's website recorded around 9m hits and sales increased by 70%. Any debate about retailing has to take into account the internet.

And let's be honest, even without our current economic situation, the pressure is mounting on 'traditional' retailers. Look at the way the success stories of e-commerce such as Boden and The White Company conduct themselves. The internet's technology permits a virtually instantaneous response to most circumstances - not that being reactive is what drives these companies' marketing efforts anyway. Their proactive efforts - the strategic emailers, newsletters and e-shots - are what the high street retailers are up against.

Internet woes

The pattern of retailing in the kitchen and bathroom industry is also being underestimated. My own guess is that if you're selling low-tech, commodity products - i.e. those products that don't require specialist installation or commissioning - how can you not expect to be impacted by the internet? This is becoming ever more evident as a new generation of consumers become 100% comfortable with buying online; what was a learning curve for my generation has become the norm for the 30-something consumer.

In addition, we have huge retailers with proven track records such as Next entering the kitchens and bathroom industry. Plus, in a complete sea change, well known brands - once the preserve of the high street store - are not only selling online, but selling online to multiples such as Screwfix. So is it any wonder the traditional retailer feels in need of a shoulder to cry on? Well, no - not really. And, as I have already said, when there's a slowdown, it's the retailers who are in the spotlight.

But here's the thing. The status quo is simply not the same anymore, so don't let's kid ourselves that it is. And the credit crunch? Well, that just adds to the retailers' woe. If there is to be a correction in our industry's fortunes, we need to appreciate there will be winners and losers. A typical winner will be the retailer with a high quality showroom with an attitude to match. And the losers - well, I think we've covered those qualities, or perhaps lack of them - so don't let it be you that falls into the field of failures.

Greg Rowe co-founded Avilion; he is now a director or Appleyard Rowe Ltd, a management and innovation consultancy.