Sainsbury's sells its Argos business to Swift Partners for £120million
See more Daily Mail on Google -save us as a Preferred SourceBy DAVID OLASEINDE andANGHARAD CARRICK, BUSINESS NEWS EDITORPublished:08:13 BST, 31 July 2026|Updated:08:46 BST, 31 July 2026Supermarket. . .
See more Daily Mail on Google -save us as a Preferred SourceBy DAVID OLASEINDE andANGHARAD CARRICK, BUSINESS NEWS EDITORPublished:08:13 BST, 31 July 2026|Updated:08:46 BST, 31 July 2026Supermarket groupSainsbury'shas agreed the sale ofArgosto Swift Partners for £120million, a decade after it bought the retailer. Sainsbury's will receive cash proceeds of at least £120million from the sale, with a £70million up-front payment when the deal completes, which is expected in February next year. The supermarket giant said it had sold Argos to Swift Partners, a group of retail specialists which includes former Co-Operative Group boss Richard Pennycook. The sale comes after an attempt to sell the retailer to Chinese ecommerce giant JD. com. Sainsbury's boss Simon Roberts said the group had ‘carefully’ considered’ options for Argos’s future and the deal would allow it to ‘fully focus on its core food business’. Swift is a new firm set up by retail veterans including Pennycook, formerMorrisonschief operating officer Trevor Strain and backed by Matt Truman and his firm True Capital. The grocery chain said Swift Partners will buyArgos standalone stores, as well as its stores within Sainsbury's shops, on a long-term agreement. This will include its logistics network, pet insurance and product warranty cover. In addition, Swift will acquire Sainsbury's distribution centre located in Daventry and Sainsbury's sourcing offices located in Shanghai andHong Kong. The new deal is expected to be completed by February 2027, with the businesses fully separating by February 2029. Sainsbury's chief executive Simon Roberts said all 14,000 Argos employees would be transferred over to the new ownership. Argosoperates through standalone stores, stores inside Sainsbury's, online delivery and collection points and was bought by Sainsbury's in 2016 for £1. 4billion. Earlier this year, analysts said Argos was becoming a thorn in Sainsbury's side after poor Christmas salesSainsbury's also bought Homebase, Habitat, and all the other retail brands owned by Home Retail Group in the billion-pound deal. Argos has previously been described as a ‘thorn in Sainsbury’s side’, having quietly struggled for several years in the face of cheaper online competitors, such as Shein and Temu. Sainsbury’s shift to a food-first strategy has seen Argos’s high street footprint minimised, as stores closed or placed into existing supermarkets as a concession. Roberts said: '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. 'Argos is the UK's second-largest general merchandise retailer, with the third most-visitedretail website in the country. However, it has battled higher costs and weaker consumer confidence, in addition to stiff competition from cheap online rivals such as Shein and Temu. Analysts came to view Argos as an unnecessary distraction for Sainsbury's as it competes with Tesco, Aldi and Lidl. Clive Black, retail analyst at Shore Capital, said: ‘In tough market conditions in recent years, Argos has been a variable and at a Group level sub-optimal performer from a financial perspective, and so a business that has drawn considerable inspection from the equity market, often on the downside. ’