Argos Sold: Sainsbury’s Unloads Brand for £120m

Sainsbury’s Sells Argos for £120m

Sainsbury’s has agreed to sell Argos for £120m, marking a significant shift in the supermarket chain’s strategy. The move comes after a lengthy process of trying to offload the brand, as Sainsbury’s aims to refocus on its core food business.

Business as Usual for Argos Customers

Despite the sale, Sainsbury’s has assured customers, staff, and suppliers that it will be “business as usual.” Argos will continue to operate within Sainsbury’s shops, offering its full range of products, including Habitat items, and rewarding customers with Nectar points.

Swift Partners: The New Owners

The buyer, Swift Partners, is a company specifically created to acquire the Argos brand. Interestingly, it includes former Co-operative Group boss Richard Pennycook, who brings a wealth of retail experience to the table.

With 667 Argos shops across the UK, including 201 standalone stores and 466 operating within Sainsbury’s, the brand has a significant presence. Additionally, Argos boasts more than 450 collection points, ensuring convenient customer access.

Argos: A Retail Pioneer

Founded in 1973, Argos revolutionized the retail experience. Customers browsed catalogues in-store and placed orders, with products delivered from connected warehouses. This innovative approach set Argos apart and contributed to its success.

The iconic Argos catalogue, once a physical book, has evolved. While it’s no longer printed, the entire range is available online, and customers can browse on tablet computers in-store.

A New Chapter for Argos

Sainsbury’s has been seeking a buyer for Argos, which has been viewed as underperforming, for some time. The supermarket giant initially acquired Argos, along with Habitat and other retail brands, in 2016 for £1.4bn. In 2024, it sold Argos financial services for around £720m.

In a statement, Sainsbury’s chief executive Simon Robert confirmed that all Argos staff would transfer to Swift Partners. He also emphasized that Argos would continue to operate within Sainsbury’s shops, and Nectar would remain a shared loyalty program.

Richard Pennycook, representing Swift Partners, expressed his belief in Argos’s future and the potential for growth and investment.

The deal is expected to be finalized in February 2024, opening a new chapter for Argos and its dedicated workforce.