Spending online is expected to double in the next four years hitting some £39 billion, according to new research.

Worldwide payments system PayPal predicts that by 2010, the largest gross profit areas online will be food and groceries, DIY and clothing, which will account for £6,248 million, £2,274 million and £4,602 million respectively.

The growth in internet spending is already recognisable as a quarter of the UK retail sector operated online in 2005 compared with just seven per cent in 2004.

PayPal believes some 24.9 million shoppers, almost 50 per cent of the population, will be online shoppers by 2010.

"Over the past few years we've seen the internet gradually eating away at the high street," said Carl Olav Scheible from PayPal.

"Consumer interest in broadband has been a key driver for the emergence of 'convenience home shopping' with ten million UK households now signed up."

Research suggests that one in five online purchases would not have happened on the high street.

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