Further evidence that high street returns are wilting as a result of online competition has emerged.
Paypal, the online payments system, has published research which found that online spending rose to £8.2bn last year.
Meanwhile, high street spending fell by £122.3bn during 2005, the survey claims.
The percentage of retailers dealing on the web has increased with 25% now possessing an online trading outlet, compared to just 7% in 2004.
The survey’s authors predict that web spending will continue to grow over the coming years and will rise to £39bn by 2010 fuelled by an estimated 24.9m active online shoppers.
An estimated 2,000 small businesses are predicted to fold this year, as a result of consumers switching from traditional outlets to online venues.
Carl Olav Scheible, head of merchant services at PayPal, said: “Today's findings from Verdict demonstrate yet again how important it is that small businesses adapt to meet consumer demand especially as 'convenience home shopping' is only set to grow faster with 11 million UK households now signed up to broadband.
“However, there is a fine line between success and failure for the newcomers of eCommerce as many online ventures learnt in the dot com crash of the late '90s.
“Retailers need to provide an impressive 'online shop' to stay ahead of the game and find the success they are looking for.”
© Crimson Business Ltd 2006
