Sainsbury's agrees to sell Argos for £120m
Under the terms of the deal, Argos will still operate in Sainsbury's shops, sell Habitat products, and offer Nectar points.
Sainsbury's has reached an agreement to sell Argos for £120 million, as the grocery chain seeks to concentrate on its core food business. The supermarket giant stated that Argos customers, staff, and suppliers will not experience any changes following the sale. Argos will continue to operate within Sainsbury's stores, sell Habitat products, and offer Nectar points.
The purchasers, Swift Partners, a newly formed company, include former Co-operative Group boss Richard Pennycook. Argos, established in 1973, initially offered customers the ability to browse catalogues and place orders, with products delivered from warehouses to the checkout. The Argos catalogue, once a physical book, is now exclusively available online.
Sainsbury's, which acquired Argos, Habitat, and other retail brands from Home Retail Group in 2016 for £1.4 billion, has been attempting to offload Argos for some time due to its underperformance. The deal is anticipated to be finalized in February. Pennycook expressed optimism about Argos' potential for growth and investment, suggesting the possibility of establishing new standalone Argos stores and possibly reintroducing the print catalogue.
Retail experts have noted that Argos has served as a distraction from Sainsbury's primary food business and that Swift Partners' digital-first approach could provide significant advantages.
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