Sainsbury's Agrees £120 Million Sale of Argos to Focus on Grocery Business
The deal will see Argos move to new ownership while customers, staff and day-to-day operations are expected to continue as normal.
By Sky News
Sainsbury's has agreed to sell Argos in a deal worth at least £120 million as the supermarket group sharpens its focus on its core grocery business.
The retailer has reached an agreement to sell Argos and the Habitat homeware brand to Swift Partners, a newly formed company led by experienced retail executives. The transaction is expected to complete by February 2027, subject to the necessary approvals.
Sainsbury's said the agreement would allow it to concentrate on food retailing while giving Argos dedicated ownership focused on developing the business. The company added that it expects the sale to have a broadly neutral impact on its underlying operating profit.
For customers, the business is expected to continue operating as normal. Argos stores inside Sainsbury's supermarkets will remain in place under long-term commercial agreements, while Habitat products and the Nectar loyalty scheme will also continue.
Argos employs around 14,000 people across the UK and has undergone a significant transformation since Sainsbury's acquired the retailer in 2016. Over the past decade it has moved from its traditional catalogue model to a predominantly digital business with hundreds of collection points located in supermarkets.
Swift Partners said it intends to invest in the business and support its future growth, including exploring opportunities to expand both standalone stores and in-store locations.
The sale marks another step in Sainsbury's strategy of concentrating on its core retail operations after previously exiting its banking business and other non-food activities. The transaction is expected to be completed early next year.