Dixons is often seen as a barometer for consumer behaviour. When the chain dumped 35mm cameras from its shelves, it signalled the adoption of digital photography by the masses – and not just the geeks. Its decision to ditch videocassette machines was seen as the final nail in the VHS coffin.

Now, after 70 years, the chain is leaving the high street. DSG International, the retailer’s owner, will rebrand the current Dixons stores as Currys.digital. With the exception of the chain’s large warehouse and duty free stores, the Dixons name will be reserved exclusively for the web.

So, is Dixons bravely marking the end of an era or still living in the past?

Online sales still only represent a sliver of what we spend overall, but are growing fast. Internet consultants, perhaps unsurprisingly, are convinced today’s events are an important marker in the evolution of e-tail.

According to Chris Lake, the editor of e-consultancy.com, the strength of online retailers lies in their ability to "empower consumers", largely by offering them tools to compare different goods and find the most suitable – or cheapest – option.

According to a classic e-tail argument, empowered shoppers combined with the e-tailer's lower overheads drive down prices and squeeze the traditional bricks and mortar rivals.

"The re-badging of Dixons to Currys.digital is a bold move by DSG," Mr Lake said. "No doubt a reaction to fierce price competition and declining profit margins."

A reaction, yes, but a wise one? Glen Drury, the UK Managing Director of Kelkoo, Yahoo’s shopping search engine, which is almost purely in the business of arming online consumers with information, said that the Dixons move flew in the face of the "new conventional wisdom" in retail.

"We’ve seen in the last 16 months or so that retailers and e-tailers are generally moving towards giving people more not less opportunities to interact with their brands," he said.

"Dixons, by exiting the high street, is going in the other direction. My gut feeling is that might be an unwise, if brave choice."

There is a suggestion that moving Dixons online exposes some muddled thinking across the DSG group. PC World, another DSG brand, actually recommends that people browse the web to educate themselves before they come into the store to buy a computer.

"Dixons just took that opportunity away from its customers. I’m not sure how many shoppers will know that Currys and Dixons are part of the same group," Mr Drury said.

Meanwhile, if Dixons thought the high street was competitive, the web might give it a nasty shock. And while the chain had 70 years experience in dealing with customers face-to-face, its widely seen as a relative newcomer to the web with some serious catching up to do.

Hitwise, the internet analysts, today announced the results of its Annual Online Performance Awards, which claims to identify the UK’s most popular sites by recording consumer visits. The sheer range of retail categories alone – 17, in sectors ranging from computers (won by www.euro.dell.co.uk) to "intimate apparel" (where www.figleaves.com took the honours) – signals just how crowded the online market place is.

In the gadgets game, John Lewis and Comet (www.comet.co.uk took the Hitwise prize in the appliances and accessories) have built up a solid reputation for adapting to the net. Dixons, in contrast has tried to transplant its print and TV expertise to the internet – with mixed success.

Meanwhile, the City appeared unconvinced that Dixons' departure from the high street was that big a deal. Richard Ratner, the Seymour Pierce retail analyst, pointed out that Dixons has had an online presence for a some time. "Whether it makes any difference that the group is engaging in a bout of rebranding, I don’t know," he said.

Was Dixons ahead of the curve in refocusing its effort online? "I think it is with the curve," Mr Ratner said. "It is the right thing to do but Dixons is going with the flow."

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