Key facts
- Sainsbury's has agreed to sell the Argos retail chain for at least £120 million.
- The buyer is Swift Partners, a new company established for the deal by retail veterans Richard Pennycook and Trevor Strain.
- The sale allows Sainsbury's to concentrate on its core food business.
- Argos will continue to trade normally, with long-term agreements for stores within Sainsbury's and for its Nectar loyalty program.
- Habitat products will continue to be sold by Sainsbury's and Argos under a brand licensing arrangement.
Sainsbury's has agreed to sell the Argos retail chain for £120 million to Swift Partners, a newly formed company established for the deal by retail veterans Richard Pennycook and Trevor Strain. The sale, announced on Friday, allows the supermarket to concentrate on its core food business, a decade after acquiring Argos as part of the Home Retail Group in 2016 for £1.4 billion. Sainsbury's CEO Simon Roberts stated that operations for staff, customers, and suppliers will remain business as usual, with Argos continuing to trade within Sainsbury's stores and maintain its digital presence. Swift Partners expressed confidence in Argos's future and plans for investment. Retail analyst Clive Black noted that Argos has been a suboptimal performer financially, with sales dipping 0.5% in the latest quarter, and questioned its alignment with Sainsbury's grocery business. Argos operates over 660 shops across the UK, with approximately two-thirds located inside Sainsbury's stores, alongside over 1,100 collection points. The deal is expected to be completed in early 2027, with full separation anticipated by early 2029. Habitat products will continue to be sold by both Sainsbury's and Argos under a brand licensing arrangement.