Sainsbury’s sells Argos for £120m

The general merchandise specialist has been acquired by a newly established company, Swift Partners, led by Richard Pennycook, Trevor Strain and Matt Truman alongside The Cotswold Company owner True Capital.

Sainsbury’s said the new owner will support the next phase of growth for Argos and build on the strength of the brand, multichannel model and store network.

The retailer reported that long-term commercial agreements with Argos, including rental income for its stores inside Sainsbury’s and relating to Nectar360 and Nectar, will create additional ongoing value.

Sainsbury’s expects to receive cash proceeds of at least £120m from the transaction, £70m of which it will receive upon completion in February 2027.

A deferred consideration of £50m is anticipated to be received over the following three years.

Sainsbury’s 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.

Roberts continued: “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.”

Swift Partners Richard Pennycook added: “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.”