Online sales are forecast to hit £5bn this Christmas, an increase of almost 20% on last year, while total sales(Store Display) over the festive season will top £40bn, a rise of 3.5% on 2012, according to forecasts from Deloitte. It says flexible delivery for shoppers could prove to be this year's Christmas battlefield. Retailers are preparing themselves for the online rush with an estimated 20,000 click-and-collect points across Britain.

Ian Geddes, UK head ofte retail at Deloit, said: "The forecast will provide some Christmas cheer for retailers. Shoppers are expected to loosen purse strings off the back of rising consumer confidence and improving economic conditions. After last year's click-and-collect Christmas, consumers' expectations around flexible delivery over the coming festive period are higher than ever before. Store(Store Display) collection is now seen as a basic offering and those retailers without this capability will struggle to convert online sales and lose resulting footfall in-store."

Meanwhile, the Royal Mail is predicting that this Saturday will be the busiest day for online sales(Store Display) this Christmas. In a survey of 500 small- and medium-sized online retailers, just 23% said they regarded traditional retailers as their main challengers. The survey predicts that price promotions will be crucial for online retailers, and shows that a third have invested in apps and other IT upgrades to make it easier for shoppers(Store Display) to buy through their smartphones this Christmas.