Sainsbury’s is to sell Argos, one of the UK’s largest sellers of TVs, mobile phones, laptops, tablets, and gaming devices, for £120m.
That price is less than a tenth of the £1.4bn it paid for the business in 2016 and around a third of the value it assigned to it a year ago. Previous talks to sell the division to jd.com collapsed.
Argos has been facing multiple pressures including the impact of the cost of living crisis and greater competition.
Some analysts have also questioned whether a decision to largely axe its chain of standalone stores in favour of concession-style presences within Sainsbury’s stores has contributed to its problems by making it less accessible to some customers.
The retailer is being sold to Swift Partners, a new company established for the acquisition by Richard Pennycook, Trevor Strain and Matt Truman alongside True Capital.
Under the terms of the sale, Swift will acquire the remaining standalone Argos branches, the outlets located within Sainsbury’s stores, the online Argos shop, all associated brands and logistics networks, plus the Argos Care and Argos Pet Insurance businesses.
It’s also buying the Sainsbury’s distribution centre in Daventry and sourcing offices in Shanghai and Hong Kong.
The deal excludes the Argos Card business which was sold in 2024 to the NewDay Group.
Sainsbury’s says the sale will allow it to focus on its core food business.
Chief Executive Simon Roberts said: “Sainsbury’s has transformed Argos into a leading multichannel retailer with millions of customers and thousands of talented colleagues. As we have strengthened our core food business, we have carefully considered what it will take to create the strongest possible future for Argos.
“Swift brings retail leadership, operational expertise, technology capability and long-term investment, alongside a deep commitment and belief in the future potential for Argos customers and colleagues. Richard, Trevor and Matt understand and value the Argos brand, share our values and will accelerate Argos’s transformation through their dedicated expertise and long-term investment.
“I would like to thank Argos colleagues for all of their commitment and hard work. Today is an important next step in building the strongest future for Argos and I would like to reassure our colleagues, customers and suppliers that it’s business as usual.
“For Sainsbury’s, this is a further step forward in our strategy. Having rebuilt the core strengths of our food business, this agreement allows us to focus all our resources and investment on the significant opportunities ahead.”
Richard Pennycook, Swift Partners, added: “What attracted us to Argos is the strength of the business, with a trusted brand, loyal customers and dedicated colleagues. We believe strongly in Argos’s future and see real opportunities to invest and build on its progress.
“Argos’s combination – of a strong digital business supported by standalone stores, stores inside Sainsbury’s and Local Fulfilment Centres – gives it a distinctive position in the market and an excellent platform for growth.
“We hold Argos senior management in high regard and plan to build on its strengths – bringing additional experience and skills to complement and augment the existing team. We see clear potential to strengthen Argos’s customer proposition, digital capabilities and nationwide reach.
“Trevor, Matt and I share a strong belief in Argos, its people and what it can achieve in the years ahead. We are all making a long-term commitment to the business and look forward to working closely with the team to deliver even more for customers, while maintaining Argos’s strong values.