Online sales at Argos have reached £1.1bn for the year ending February 2009, with that channel now representing 26 per cent of all sales at the retailer.

According to Home Retail Group, parent company of Argos, web sales for the online and catalogue business saw a 22 per cent increase from £900m the previous year.

Some £700m of all online sales at Argos were generated through its Check & Reserve service and also rose from the £500m posted in the previous year.

However, total group sales were down one per cent to £5.89bn, with a decrease of 4.8 per cent for like-for-like sales at Argos. The group's Homebase unit reported that sales decreased by 10.2 per cent.

"In a particularly difficult trading environment, we have managed our costs and cash very effectively to limit the impact on profits. This focus has put us in an even better position to trade through another tough year while further improving our competitive position,” said Terry Duddy, Home Retail Group chief executive.

“We will continue to develop our broad product range, benefit further from our advantaged sourcing operations and invest in our multi-channel operations to strengthen our position as the UK's leading home and general merchandise retailer," said Duddy.