Stuart Rose, chairman of bellwether British retailer Marks & Spencer (MKS.L), said consumers can cope with government spending cuts and retail sales will grow next year, even though trading will be tough.
Retailers in the United States and Europe must consolidate and invest in emerging markets and innovation or risk stagnating in an environment where domestic demand will remain subdued for years, industry leaders said.
Bellwether British retailer Marks & Spencer said it is hoping its older customer base will see it through the gathering storm of public sector cuts and tax rises as it beat forecasts for second-quarter sales.
Retailer Marks & Spencer is set to report a third consecutive rise in underlying quarterly sales, though the rate of improvement may have slowed a little, highlighting the fragility of the consumer recovery.
Sainsbury, Britain's third-biggest grocer, announced a board reshuffle that underscores its growth ambitions and could secure a successor to CEO Justin King, in the latest round of management changes in the sector.
Marc Bolland, set to take over as chief executive of Marks & Spencer, may look to raise cash from shareholders to improve his chances of reviving the British retailer and justifying his huge pay package.