Online retail sales rose dramatically during 2003, despite an alarming fall in takings by high street stores over the same period.

In its end of year report, ecommerce provider Actinic found that most UK web retailers experienced sales increases of between 10 and 30 per cent over the past year, with one company even enjoying a 400 per cent rise in business.

The final quarter of last year was particularly disappointing with many customers leaving their Christmas shopping until the last moment, depriving small firms of much-needed festive revenue.

Although retail sales have remained fairly strong during the economic downturn, many entrepreneurs are opting to set up online stores due to concerns over the high costs and crime increasingly associated with ‘bricks and mortar’ shops.

Recent years have seen online sales grow quickly, with Christmas 2002 being the first festive period where web transactions outpaced traditional shopping.

Chris Barling, of Actinic, said that there was a new confidence amongst customers in using the web.

“I’d say that the results indicate that part of the fall in high street sales is directly attributable to increasing use of the internet by both shoppers and retailers,” he said.

Mike Hughes, of the First Tackle online store, said: “Our experience of Christmas trading on the Internet is almost the opposite of that seen by many high street retailers.

“While they suffer from a mad last minute dash and consequent discounting, our sales boom was from early in November, only tailing off about a week before Christmas as the last posting dates loomed,” he said.

Copyright © 2004,