Sainsbury's Sells Argos to Swift Partners for £120 Million
The supermarket group aims to focus on its core food business with the sale of the general merchandise retailer.
Supermarket group Sainsbury's has announced the sale of its subsidiary Argos to Swift Partners for £120 million. The deal, expected to be completed in February 2027, includes an upfront payment of £70 million, with the full separation of businesses anticipated by February 2029.
Swift Partners is a newly established firm composed of retail experts, including former Morrisons chief operating officer Trevor Strain and Richard Pennycook, supported by retail investment firm True Capital.
Under the agreement, Swift Partners will acquire Argos's standalone stores, its outlets within Sainsbury's locations, its logistics network, pet insurance, and product warranty services. The acquisition also encompasses Sainsbury's distribution center in Daventry and sourcing offices in Shanghai and Hong Kong.
Sainsbury's stated that the sale will allow the company to concentrate on its core food business and support Argos's next phase of growth. Argos, which operates through physical stores, online delivery, and collection points, was purchased by Sainsbury's in 2016 for £1.1 billion.
Simon Roberts, chief executive of J Sainsbury plc, expressed confidence in Swift Partners' leadership, operational expertise, and commitment to Argos's future potential. He stated that the new owners understand and value the Argos brand and will drive its transformation.
Argos is the UK's second-largest general merchandise retailer and ranks as the third most-visited retail website in the country. This sale follows a period where Argos has reportedly become a challenge for Sainsbury's, contributing to a decline in overall performance during the critical Christmas sales period. While Sainsbury's grocery sales increased by 5.4 percent in the third quarter, Argos sales decreased by 1 percent overall and 2.2 percent during Christmas.
Analysts attributed Argos's struggles to broader economic pressures, including inflation and cautious consumer spending, as well as intense competition from online retailers. Sainsbury's strategic shift towards a 'food-first' approach and the integration of Argos concessions within supermarkets were also cited as factors affecting Argos's high-street presence and performance. The company had previously been in discussions to sell Argos to JD Sports, but that deal ultimately fell through.