Grocery and electricals will be winners
Some£18.5 billion of consumer spending is expected to shift from the high street to the internet by 2010, by which time web transactions will account for 6 per cent of consumer spending.

Online shopper numbers are expected to rise by 10 million to 25 million over the same period, with the average transaction value increasing to£48, according to a study by payments systems business PayPal and analyst Datamonitor.

Food and grocery is expected to remain the most lucrative sector. Currently valued at£1.86 billion, it is forecast to more than treble by 2010. Sales of electrical goods are also expected to increase significantly, from£1.94 billion last year to£4.60 billion by 2010. The clothing and footwear market is predicted to increase by 160 per cent to£2.27 billion.

PayPal Europe chief executive Geoff Iddison said: 'The safety and security of online commerce has been firmly established with large numbers of shoppers. In the next five years, price and convenience will convert ever higher numbers of people to the internet for their shopping.'

In the survey, 43 per cent of those questioned said price was the overriding factor in choosing to shop online.

By 2010, 66 per cent of UK adults are likely to have broadband at home.

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