UPDATE 1-PPR says to focus on cash and cost-cutting

* PPR CEO says to focus on generating cash

* Says to hold on to retail

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PARIS, May 7 (Reuters) - French retail and luxury group PPR (PRTP.PA: Quote, Profile, Research) on Thursday pledged to focus on cutting costs and generating cash to emerge stronger from the current consumer downturn.

PPR, which owns the French luxury group Gucci and retailers Conforama and Fnac, has been hit hard by the financial crisis and reiterated it would steer clear of making any major acquisitions or disposals.

Analysts have been regularly speculating the group would sell its retail arm to focus on luxury.

"If we concentrated on luxury, it would mean that we would be accepting to be a small company on a world scale," PPR Chief Executive Francois-Henri Pinault told the group's annual general meeting in Paris.

"It is important to have these two businesses to have a world presence."

He added the priority remained cutting net debt, which stood at 5.5 billion euros at the end of the year.