Retailer Argos has seen its online sales grow almost six times more than shop-based transactions in the first quarter of 2007, and such business now representing 18 per cent of overall business.

Home Retail Group, which owns both Argos and Homebase, says total sales increased by 4.5 per cent for the quarter while internet orders grew 29 per cent, half of which were reserved for in-store collection.

Totals sales at Argos were £893m for the first 13 weeks of the year and £463m at Homebase.

‘We have had a strong start to the financial year in a highly competitive market,’ said Home Retail Group chief executive Terry Duddy. ‘But we remain cautious given the uncertain consumer outlook.’

Meanwhile, the rise of online travel web sites impacted the results of package holiday firm First Choice, which recently announced a merger with German travel group TUI.

While overall sales rose slightly to £1bn, driven by an increase in long-haul flights, its pre-tax losses have widened from £76.5m last year to £82.5m.

Sales of short haul flights, which travellers are increasingly turning online to book, have fallen are by nine per cent.

It is increasingly turning to online destination services, which allow travellers to book hotels and other services, to prop up its business. Sales at its hotelbeds and bedsonline web sites have risen by 46 per cent and 55 per cent respectively.