Sainsbury's to offload Argos in £120 million deal

Sainsbury’s has agreed to sell its Argos business in a deal worth at least £120 million.

Swift Partners is set to buy 201 Argos standalone stores, as well as its 466 hubs within Sainsbury’s shops and a further 466 collection points, logistics network, pet insurance and product warranty cover.

Swift will additionally buy Sainsbury’s distribution centre in Daventry and sourcing offices in Shanghai and Hong Kong.

Sainsbury’s says the move will allow it to focus on core food and grocery operations.

Swift is a new firm set up by retail experts including former Co-operative Group boss Richard Pennycook and ex-Morrisons chief operating officer Trevor Strain, and is backed by Matt Truman and his True Capital retail investment and advisory firm.

Sainsbury’s will get cash proceeds of at least £120 million from the sale, with a £70 million upfront payment when the deal completes, which is expected in February next year.

A full separation of the Argos business is earmarked for 2029.

Sainsbury’s did not disclose how many staff will transfer to Swift Partners under the deal.

Simon Roberts, Sainsbury’s chief executive, said: “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.”

He added it was “business as usual” for Argos workers and customers following the agreed sale.

Richard will act as executive chair of Argos following the deal, dedicating three days a week to the business, while Trevor and Matt will serve on the Argos board.

Richard added: “We believe strongly in Argos’ future and see real opportunities to invest and build on its progress.”

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