Electronics and furniture retailer Harvey Norman will launch an online store “within weeks,” signalling it will cease its public battle with the government over internet shopping, according to sources knowledgeable in the matter.

The insiders confirmed a News Ltd report that Gerry Harvey, the retailer's managing director, would soon unveil a "sizeable internet presence”.

“My heart's beating very strongly on whether we make any money out of it," he told News. "I haven't got any choice. I've got to cannibalise our stores."

The rise of online shopping has put pressure on Australia's so-called bricks and mortar retailers who face higher costs for staff, distribution and real estate than their internet rivals. The rising value of the Australian dollar has supercharged the trend of local consumers shopping online from retailers based in the US, UK and elsewhere.

That squeeze helped send store-based retailers REDgroup - owner of Borders and Angus & Robertson book shops - into administration last month. Owners of clothing retailer Colorado said today they would have to place the company into administration after a recovery plan was rejected by creditors.