Sainsbury’s agrees to sell Argos for £120million as it focuses on food business

SAINSBURY’S has agreed to sell Argos as part of a £120million deal. The business will be sold off to Swift Partners, a new company formed by retail veterans Richard Pennycook, Trevor Strain and Matt Truman. Argos will continue to trade as normal from its standalone stores and its locations inside Sainsbury’s stores. The deal means Argos will have dedicated ownership but customers can still visit their local stores as usual. Sign up for the Money newsletter Thank you! Sainsbury’s and Argos will also enter a series of commercial agreements, which means the supermarket can continue to sell Habitat products. Argos will also continue to use Sainsbury’s collection points and the Nectar card scheme. Sainsbury’s has been focusing more on its food business since its chief executive Simon Roberts took over in 2020. The supermarket chain said the deal is a “further step forward in our strategy” and would allow it to “focus all our resources and investment on the significant opportunities ahead”. It also said it would create “the strongest possible future for Argos”. Swift has acquired all Argos standalone stores as well as those inside Sainsbury’s supermarkets, plus Argos Care and Argos Pet Insurance. Most read in Money It will also acquire the Sainsbury’s distribution centre in Daventry and its sourcing offices in Shanghai and Hong Kong. The new deal is expected to be completed by February 2027, with the businesses fully separating by February 2029. Sainsbury’s bought Argos in 2016 for £1.1billion. Argos is the UK’s second-largest general merchandise retailer, with the third most-visited retail website in the country. It has more than 1,100 collection points across the UK. Mr Roberts said: “I would like to thank Argos colleagues for all of their commitment and hard work. “Today is an important next step in building the strongest future for Argos and I would like to reassure our colleagues, customers and suppliers that it’s business as usual.” Last year, Sainsbury’s was in talks to sell Argos to JD Sports but the deal fell through. Richard Pennycook from Swift Partners said his company had been attracted to Argos as it has a “trusted brand, loyal customers and dedicated colleagues”. “We believe strongly in Argos’s future and see real opportunities to invest and build on its progress,” he said. Mr Pennycook is a former chief executive of the Co-op Group. Comment now