Sainsbury’s Agrees £120m Sale of Argos to New Investment Group

Sainsbury’s has agreed to sell retailer Argos for £120 million as the supermarket group continues to sharpen its focus on its core grocery business.

The buyer, Swift Partners, is a newly formed investment vehicle that includes former Co-operative Group chief executive Richard Pennycook.

Sainsbury’s said the sale will have no immediate impact on customers, employees or suppliers. Argos will continue operating from Sainsbury’s supermarkets, customers will still be able to earn and redeem Nectar points, and Habitat products will remain available through the retailer.

The company also confirmed that all of Argos’s nearly 14,000 employees will transfer to Swift Partners as part of the transaction.

Argos currently operates 667 stores across the UK, including 201 standalone outlets and 466 located inside Sainsbury’s supermarkets. It also has more than 450 collection points nationwide.

Founded in 1973, Argos became one of Britain’s best-known retailers through its catalogue-based shopping model, where customers selected products from its iconic printed catalogue before collecting them from in-store stockrooms. Although the printed catalogue was discontinued in recent years, the retailer now operates primarily through digital platforms and in-store tablets.

Sainsbury’s acquired Argos and its parent company, Home Retail Group, in 2016 in a deal worth £1.4 billion. Since then, it has gradually reshaped the business, including the sale of Argos Financial Services, which operates the Argos Card, in 2024.

The supermarket group had previously explored selling Argos, with negotiations involving Chinese online retailer JD.com ending without an agreement last year.

Sainsbury’s Chief Executive Simon Roberts said the agreement allows the company to concentrate on its food retail operations while ensuring continuity for Argos customers and staff.

Richard Pennycook said Swift Partners sees significant opportunities to invest in the retailer and expand its future growth. He suggested the business could open additional standalone Argos stores and did not dismiss the possibility of bringing back the retailer’s famous printed catalogue.

Retail analysts said the sale reflects Sainsbury’s long-standing efforts to separate Argos from its supermarket business. Some argued the retailer had struggled financially under supermarket ownership, while others believe dedicated investment could strengthen Argos’s position as a digital-first retailer capable of competing more effectively with major online rivals.

The transaction is expected to be completed in February next year, subject to the necessary approvals.