Better Music owner Greg Soulsby is one of many in the retail sector relying on amplified onlines sales to sustain his business, as public service cuts begin to bite the local economy.
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Data released this week painted a grim picture for territory retailers, the sector deteriorating to the weakest position of any state or territory.
But Mr Soulsby said an expansion of online sales is helping drive sales for his music business.
"We were expecting growth, we are getting growth," Mr Soulsby said.
"But it is all online growth so we are putting our energies into this area."
"Things are looking positive for the future."
The release of the Deloitte Access Economics retail report this week provided the latest warning about the ACT's mid-term prospects.
It cited the loss of public service jobs as a key factor in the fall of the ACT economy from one of the nation's strongest, to one of the weakest.
One month ago the Australian Retailer's Association predicted -0.4 per cent negative growth for ACT retail over the Christmas period when compared with last year's Christmas period.
Association executive director Russell Zimmerman said retailers should look to online for growth.
"All retailers should focus on online sales," said Mr Zimmerman.
"There is always an opportunity to get online locally, nationally and worldwide not just in Australia."
Better Music said it had transformed from a local shop servicing the Canberra market to a national online retailer.
Like others, it is bracing for a digital rush this Christmas.
Nationally almost one in five consumers will do their Christmas shopping online and generate about 15 per cent of total sales.
In Canberra, about 45 per cent of shoppers said they would do their shopping online, according to the Australian National Retailers Association's annual survey of Christmas shoppers.
Toys will prove to be popular online purchases with one quarter of shoppers saying that is where most of their gift money will be spent.
Mr Soulsby said online shopping had significantly increased since the first year of online trading.
"There has been a 50 per cent increase on our first year...this year alone there has been another increase," he said.
"People like the fact they can buy on ebay, email, phone, online store and we are active in social media and that has been quite important in communicating with our customers as well."
Mr Zimmerman said the lack of growth in ACT retail sales was worrying.
"We're disappointed to see sales dropping anywhere," he said.
"We hope to see growth. Especially, given retail is the largest private employer in the country."
