Online shopping by New Zealanders is expected to nearly double in the next five years to more than $5 billion by the end of 2016, putting the squeeze on traditional retailers.
The latest Australia New Zealand Online Shopping survey shows 1.9 million New Zealanders aged over 15 are expected to spend an average $1659 this year.
That amounts to $3.2 billion this year, rising to an expected $5.4 billion by 2016.
The survey shows shoppers spend more than a third on international websites, with clothing, footwear, jewellery and fashion items the fastest growing segments.
PWC partner and retail industry spokesman Julian Prior says brick and mortar retailers have to fight back with a digital media presence.
He says retailers need to ensure that their websites have relevant products and engaging presentation.
Mr Prior says they also need to take advantage of things like Facebook and Twitter to profile their brand and products.
"I think most of all what they need to do is understand what their customers see as value for money and understand what products their customers want to buy and recognise that those customers want to buy those products at any time and from anywhere".