The Retail Futures 2018 report said that during the same period the share of online retail sales are likely to rise from 12.7% in 2012 to 21.5% in 2018. It said that the changes could result in the loss of around 316,000 job losses.
The report also predicted that a further 164 major or medium-sized companies will go into administration which it said could lead to the loss of 22,600 stores and 140,000 jobs.
The report said that, although retail shops would remain an "important, although smaller" part of retailing as online sales continues to grow, the "combined pressures of high costs, consumer reluctance to spend and rapid growth of online retailing" had led to a need for the 'normal' retail model to be revisited.
It recommended that a £320 million fund should be created to start redeveloping "problem town centres" to turn failing and empty shops into homes as well as other facilities in demand by local communities, including entertainment outlets, offices and classrooms. "As a result of this policy perhaps 15,000 - 20,000 new homes could be created over four years," it said.
The report also warned that the transformation of the UK's retailing could also become a long-term crisis for property markets and town centres. It said that major falls in demand for stores could cause a "significant" fall in property prices which would affect property assets "for many years to come".
"Retailing and retailers will either make clear strategic decisions that permit online retail to coexist with other retail channels in a multichannel world allowing bricks and mortar retailers to transform themselves, or, by avoiding making these decisions, multiple retailers will disappear or be so mortally wounded that a large minority of business categories become dominated purely online retailers," said CRR in a statement.
