According to a new forecast delivered by Deloitte Touche Tohmatsu, bricks-and-mortar retailers could see even lower sales in 2007 as people spend more money online, writes MediaPost.

The report cites greater knowledge of a product on the part of the consumer as one of the biggest reasons e-commerce will pull money from physical shops. That means the information gap that once favored retailers, which could convince shoppers they should make a purchase, is now all but closed.

Deloitte also notes that online word-of-mouth can be damaging to the reputation, and subsequently sales, of a retailer. People now have the ability to easily tell others of their bad experiences or point out politically incorrect practices, such as the use of child labor.

Moreover, people online are becoming their own retailers, often through auction sites. The ability of anyone to set up their own online storefront is taking market share away from traditional retailers.

Deloitte holds out hope for retailers that embrace online marketing strategies such as seeding sites like YouTube with ads that also entertain, thus creating positive word-of-mouth and raising awareness among those the video is shared with.