Digital Unite, a company which helps over 50s to use IT, claims that it is currently only the younger generation that uses broadband connections to get cheap deals online.

The group claims that if elderly people were aware of the fact that cheap deals are available, that this could be “quite a big motivator” in influencing them to join the broadband generation.

Gil Adams, information manager at Digital Unite, says: “They’ve heard tell that you can get special deals on insurance and travel – apart from it being a whole bunch easier to book things online once you know how, you can also get 20 per cent off and you can even get fuel cheaper, which is a big issue for older people.”

Speaking about broadband, he added: “Once people get it they love it, and age is no barrier – we’ve proved that so many times.”

Help the Aged and Age Concern recently claimed that a “digital divide” means elderly people are missing out on the best deals.

According to a spokesman for MyVoucherCodes, a company which supplies discount codes for online retailers, consumers are now more likely to hunt for online bargains in order to save cash.

Mark Pearson, managing director of the organisation, said stores were more than happy to cater for this as it was one way to secure their custom at a time when many businesses are struggling.

He explained the ongoing effects of the credit crunch had forced people to be more thoughtful about how they shop for goods and this means the public will take more time making use of things like price comparison sites.

“They’re still spending, because they still need things, but they research and they use comparison sites and online discounts. Also, the retailers, if they’re big enough, are offering bigger discounts, so it’s become a bit of a cut throat sector,” Mr Pearson added.

His comments follow the publication of the 12th annual State of Retailing Online 2009 study from Shop.org and Forrester Research, which looked at 117 web-based sellers and found four out of five believe the web is better suited to withstand the recession than other selling platforms.

It was also noted 24 per cent of the respondents said they would be spending more on their internet business than originally planned in order to make the most of this.

The web store trade body, the IMRG, predicts spending online on Christmas Day will exceed £100million for the first time.

Around £84million was spent online last Christmas Day, predominantly at sites such as eBay, Amazon, Argos, Play.com and Apple iTunes.

This year John Lewis and some electrical chains will launch their internet sales on Christmas Eve.

Subsequently, high street stores are experiencing the worst Christmas in over 30 years. The tough conditions have prompted high competition and reductions of up to 75 per cent.

Some retail experts believe we are seeing a fundamental shift in the role of the high street with a move to fewer stores with many seen as showrooms.

Hundreds of shops are expected to close for the next few weeks, led by Woolworth’s and MFI, as customers switch to online stores and other cheap alternatives.

Despite fears of a credit crunch christmas, online spending surged by 16 per cent in November compared with the same time last year, according to the IMRG Capgeminie-retail sales index. Last month’s sales were also up by 26 per cent on October, when consumer confidence took a blow from the fallout of the banking crisis.

In a separate survey, Experian found that retail footfall dropped by an average of 9.1 per cent at the weekend; Saturday’s high street traffic fell by 13.12 per cent and Sunday’s by 4.99 per cent.

Directors at IMRG said factors driving November’s online sales surge included e-tailers matching the aggressive discounting of retailers, such as Marks and Spencer’s conducting one-off sales in its stores and online; and customers increasingly checking prices online before purchasing.

James Roper, chief executive of IMRG, the global industry body for e-retail, said: “While we would naturally expect to see a monthly increase in online sales at this time of the year, it is perhaps surprising that we are continuing to see yearly growth during these otherwise difficult times for retailers. This is a sure sign that high street retailers should look to diversify their activities by embracing the online space, as their customers have.”

David Smith, IMRG operations director, said: “I am amazed that Gap, for example, does not yet have a transactional website. It must be hurting them.”

He concluded: “Undoubtedly, the overall retail cake has shrunk and the internet is now getting a slightly bigger piece of the cake. What we are seeing is that the internet is really coming of age for the consumer.”