Sainsbury's has agreed to sell its Argos business to investment group Swift Partners in a deal worth at least £120 million, the company announced on July 31, 2026.
Swift Partners will acquire standalone Argos stores and locations inside Sainsbury's outlets under a long-term contract.
>>> Rescuers Find 4 Bodies After Avalanche on Pakistan's Broad Peak
The transaction also includes Argos's logistics network, product warranty cover, and pet insurance operations.
The deal covers Sainsbury's distribution hub in Daventry and its international sourcing offices in Hong Kong and Shanghai.
Swift Partners was founded by former Co-operative Group head Richard Pennycook and former Morrisons chief operating officer Trevor Strain, with backing from Matt Truman's retail advisory firm True Capital.
Sainsbury's expects an upfront cash payment of £70 million when the deal completes in February next year, bringing total cash proceeds to at least £120 million.
The divestment comes as Sainsbury's reported a 2.7 percent increase in total retail sales excluding fuel, reaching £9.15 billion over the 16 weeks to June 20.
Grocery sales rose 3.6 percent to £8.04 billion, helped by value offers like Nectar discounts and Aldi price matching.
>>> Kate Garraway Sneaks Back Onto Good Morning Britain After Loo Delay
However, non-grocery performance remained weak, with general merchandise and clothing sales dropping 3.7 percent.
Argos saw a 0.5 percent decline in sales as weak consumer spending affected average selling prices despite positive sales volumes.
CEO comments
Simon Roberts, Chief Executive of Sainsbury's, said customers are looking for value more than ever.
He noted the company is consistently delivering quality at great value, so more people are choosing Sainsbury's for their big weekly shop.
Roberts also acknowledged the broader trading environment and upcoming events impacting consumer activity.
He said this has driven an encouraging start to the year with continued volume growth and market outperformance.
>>> Manchester United Confirm Fredricson Exit Amid Active Summer Transfer Window
He thanked corporate partners and staff across both brands as seasonal events approach, mentioning the World Cup and an exciting summer of sport.
