Australian researchers have asked international executives about the future of this sector - this is what they said.
Monash University's Australian Centre for Retail Studies, on behalf of the World Retail Congress, asked 219 senior retail executives from around the world for their view of the year ahead.
Surprisingly, Australian and New Zealand CEOs reported the lowest level of optimism in the world.
Globally, the Chinese and Indian markets are seen to offer the greatest growth prospects for retail and there is cautious optimism in local consumer confidence.
Research director Dr Sean Sands said CEOs in other markets are hopeful despite the state of the global economy.
"Retailers operating in China, the Middle East, Africa and India all expected sales to increase in the year ahead, while Australia, New Zealand, North America and Central and Eastern Europe expected there to be little change," he said.
Although global retailers are generally cautiously optimistic about local consumer confidence, Australian and New Zealand CEOs reported the lowest levels.
Growth is expected to come from emerging markets, the survey found.
"The survey rated China and India as the best growth markets globally, while Western Europe was rated as the worst growth prospect, despite the majority of current sales being from this region."
Building consumer loyalty is seen as the greatest opportunity to increase sales, with 50 per cent of retail CEOs listing this as a key area to grow market share.
Recruitment and training of staff ranked as the most common retail growth priority, with 34 per cent of CEOs indicating well-trained and knowledgeable staff as growth drivers.
Store development, expansion, product development and online channel growth also stood out, as well as improving supply-chain efficiencies and understanding consumer behaviour.
The survey found 45 per cent of retail CEOs felt economic instability will have a strong impact on retail spending, while 50 per cent felt it will be moderate.