Overall retail sales fell by 3.9% in June, the steepest monthly decline since records began in 1986, but Britain’s 15 million broadband users are turning increasingly to online retailers.

Web sales total £26.5bn so far this year, and independent price comparison and switching service uSwitch.com predicts that this trend will accelerate. Online sales are expected to reach £163bn a year by 2020, accounting for a 44% share of the overall retail market. The figure for this year will be about 19%. Based on these figures, uSwitch.com forecasts that online shopping will overtake the high street in 2026.

Consumers now spend an average of 1.6 hours each week shopping on the net, or three days a year. Britain is leading the way in Europe in online shopping. Total UK online sales in 2007 were nearly 40% higher than closest rival Germany, as well as France, Italy and Spain.

The sophisticated online offering of the UK's food retailers, combined with high consumer confidence in shopping on the internet, have also contributed to Britain having the highest online sales growth rate in Europe, increasing by 75% between 2005 and 2007.
 
Soaring fuel prices are also forcing more consumers to shop on their computers rather than on the high street. Consumers now pay an average of £65 to fill their tanks - a 33% rise or an extra £431 a year since 2007. With households making an average of 42 large grocery shops every year, families are currently spending an additional £53 a year just driving to and from the supermarket.

Despite the increasing popularity of internet grocery shopping, the fastest growing online retail sector is clothes, accessories and shoes. The number of customers buying these items over the internet has increased from 20% in 2006 to 36% in 2008.

"With less spending money than ever, higher petrol prices and busier lifestyles, it makes perfect sense for consumers to turn to the internet to fulfil their shopping needs,” said Steve Weller of uSwitch.com.
 
"Broadband prices are falling while speeds are getting faster, making it cheaper and simpler for consumers to log on instead of going out to the shops.  Online security has vastly improved so our peace of mind is greater than ever before. The internet makes it easy to shop around at maybe 40 or 50 different stores in one go to make sure that we are getting the best deals.

"The new figures show that consumers have wholeheartedly embraced online shopping and this trend is set to continue. With 15 million households having access to broadband connections, shoppers have instant access to the global online high street. Now is the time to make the most of this, and shop around to make the biggest savings."

uSwitch has the following advice for online shoppers:

• Use only reputable brands and check that a contact address and telephone number is available in case of queries
• Check that there is a padlock icon at the bottom of your screen, and that the web address in your browser starts with ‘https' before providing any payment details on the website; and
• If possible, use a credit rather than a debit card for extra protection against fraud.

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