Sainsbury's sells its Argos business to Swift Partners for £120million

Published: 08:13, 31 July 2026 | Updated: 08:26, 31 July 2026 Supermarket group Sainsbury's has revealed the sale of Argos to Swift Partners in a deal worth £120million. Sainsbury's will get 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. Swift is a new firm set up by retail experts including Mr Pennycook, former Morrisons chief operating officer Trevor Strain, and backed by Matt Truman and his retail investment and advisory firm, True Capital.  The grocery chain said Swift Partners will buy Argos standalone stores, as well as its stores within Sainsbury's shops, on a long-term agreement, including 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 and Hong Kong.  The new deal is expected to be completed by February 2027, with the businesses fully separating by February 2029. The sale will enable full focus on Sainsbury's core food business and support the next phase of growth for Argos. Argos operates through standalone stores, stores inside Sainsbury's, online delivery and collection points and was bought by Sainsbury's in 2016 for £1.1billion.  Earlier this year, analysts said Argos was becoming a thorn in Sainsbury's side after poor Christmas sales Sainsbury's also bought Homebase, Habitat, and all the other retail brands owned by Home Retail Group in the billion-pound deal.  Simon Roberts, chief executive of J Sainsbury plc, 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-visited retail website in the country.  Last year, Sainsbury's was in talks to sell Argos to JD Sports but the deal fell through.  Earlier this year, analysts said Argos was becoming a thorn in Sainsbury's side after poor Christmas sales, as Argos dragged down Sainsbury's otherwise strong festive performance.  While Sainsbury's grocery sales rose 5.4 per cent in Q3, Argos sales fell 1 per cent overall and 2.2 per cent over the critical Christmas period. Argos struggled against general economic pressures (inflation, cautious spending) and heavy competition from ultra-cheap online rivals like Shein and Temu. Its performance was also affected by Sainsbury's focus on a 'food-first' strategy and the integration of Argos into supermarket concessions, which reduced its high-street visibility.  Analysts viewed Argos as an unnecessary distraction for Sainsbury's as it competes with Tesco, Aldi and Lidl.