Sainsbury’s has agreed to divest Argos for a minimum of £120 million to refocus on its primary food operation. The transaction entails the transfer of Argos stores and collection points to Swift Partners, a newly established entity for this purpose.
Despite this move, Sainsbury’s assured that Argos will continue its operations without disruption, operating through standalone outlets, locations within Sainsbury’s stores, online delivery, and collection points. Swift will also take over Argos’ pet insurance business and product warranty services.
In addition to the store transfers, Swift will acquire Sainsbury’s distribution center in Daventry, along with Sainsbury’s sourcing offices situated in Shanghai and Hong Kong. The sale is anticipated to be finalized in February 2027, with Sainsbury’s expecting to receive at least £120 million, including an upfront payment of £70 million.
Simon Roberts, the Chief Executive of J Sainsbury plc, expressed gratitude to Argos employees for their dedication and effort, emphasizing that the deal signifies a significant step towards a robust future for Argos.
Swift Partners, comprising retail experts including former Co-operative Group chief Richard Pennycook and ex-Morrisons COO Trevor Strain, supported by retail investment firm True Capital, intends to enhance Argos’s customer offerings, digital capabilities, and nationwide presence.
The sale marks a strategic shift for Sainsbury’s, which acquired Argos for £1.4 billion in 2016 and subsequently transitioned to a model with fewer standalone stores, emphasizing collection points within supermarkets. The sale includes the closure of all physical and online operations in the Republic of Ireland by June 2023.