RETAILERS in the south are keeping a beady eye on the latest consumer trend - Internet shopping.

Online retailers had a record Christmas, with a sales rise of nearly 70 per cent on 2002 to £2.5 billion.

The Interactive Media in Retail Group (IMRG) claims the 2003 festive season was a watershed in UK retailing, with implications for both jobs and stores.

IMRG chief James Roper said: "Thousands of retail outlets will close in the next few years, jobs will be lost and town centres will be transformed."

He said ten per cent of UK shopping would be done online by the end of the year.

The most popular online products have been digital cameras, mobile phones and DVD players, with the top shopping site being eBay UK, followed by Amazon UK and Argos.