A leading city business group is predicting fewer stores in Canterbury as online shopping increasingly takes bigger bites out of High Street takings.

Lisa Carlson, who heads the Canterbury Connected Business Improvement District, known as BID, fears traditional retail space could shrink due to "rapidly changing times" she describes as "a bit scary".

She was speaking after the festive season brought some respite for hard-pressed stores in Canterbury, where there were both winners and losers.

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"We don’t have the figures yet, but anecdotally I am hearing that some stores did well and some not so," she said.

One concern is that shops will be replaced by more places to eat and drink - the latest example being the closure of Steamer Trading in Burgate, which is being replaced by a Harris and Hoole coffee lounge.

Another significant site up for sale is the nearby Blacks outdoor shop which is holding a closing down sale.

It is believed to be relocating to smaller premises elsewhere in the city.

Tellingly, the landlord has applied for planning permission to add 'A3 restaurant' to its potential future uses.

But Mrs Carlson, whose organisation funds city centre enhancements and activities from a levy on traders, remains confident the city is in a better position than many locations to continue thriving.

“It is worth noting that 80% of sales are still from brick and mortar but there is no doubt the influence of online shopping is increasing,” she said.

More than 20 shops are currently empty in the city, but some of those have new tenants waiting to go in and Mrs Carlson says vacancy rates are actually better than in 2013.

“Whitefriars, for example, is fully occupied and the city’s footfall count remains strong with an average of around 210,000 a week,” she said.

She believes the future for Canterbury is as an attractive destination for visitors, who will then be tempted to shop, eat and drink, but she admits that parking remains a “bugbear” issue.

She also thinks that as the presence on the High Street of national chains comes under increasing pressure from online shopping, the independents will play a bigger role.

“There may be less retail space needed in the future. It sounds a bit scary, but I think Canterbury is in a strong position if we and traders and the city council work together,” she said.

The Canterbury BID levies traders to pay for extra services and features to make the city centre more attractive.

This includes Christmas lights, hanging baskets, street cleaning, BID ambassadors and helping organise and promote family-orientated activities like treasure hunts.

In June or July, BID will be balloting traders again and Mrs Carlson is hoping her team will be able to convince them the money has been spent to their advantage, and to vote for a second five-year term.

It comes as city centre shop landlords are having to offer more flexible arrangements with their tenants to help keep them in business.

One of the biggest in Canterbury is the Dean and Chapter, which owns 62 largely independent shops in Burgate, Sun Street and Palace Street

Its estate manager, Natalie Beldin, says the organisation is taking a pragmatic approach with tenants in view of the growing challenges in the retail sector.

"A lot of our portfolio is in retail and we are having to be more flexible with our approach to tenants' rents and leases because no one wants to see empty shops," she said.

"Of course, there is only so much we can do and we have to weigh up the alternative of the shop standing empty and not bringing in any income.

"But there has been a lot of uncertainty in the retail sector right now and the next few months will be very telling."

Mrs Beldin says that of the 62 premises, only five are unlet and of those, works are being undertaken to three buildings.

One of them is the former Noa Noa fashion store, which Mrs Beldin says is being divided into smaller units.

The government is also raising the threshold at which small businesses will have to start paying business rates, which Mrs Beldin says will help take some of the pressure off them.

Meanwhile, the city council is investigating whether to make a bid for government funding from a new pot of money designed to help historic High Streets.

In a new initiative, the Ministry of Housing, Communities and Local Government has allocated £675 million to help transform town and city centres into "modern vibrant community hubs".

Up to £55m of the fund has also been specifically set aside to support the regeneration of 'heritage high streets', helping to restore historic high street properties for new work spaces or cultural venues.

High Streets minister Jake Berry said: “We all know high streets are changing, we can’t hide from this reality.

"But we’re determined to ensure they continue sit at the heart of our communities for generations to come.

“To do this we have to support investment in infrastructure, boosting local economies and ensuring people are able to get the most out of their local high streets.

"Empowering leaders on the ground is key too – they best understand the challenges facing their areas.

“Our Future High Streets Fund will drive forward this change, transforming our town centres into the thriving community hubs of the future."

The council's plans for a £650,000 scheme to refurbish St George's Street remain in its budget, but are unlikely to attract the grant funding.