Sainsbury’s sells Argos to Swift Partners in £120m deal

Argos finds a new home

The grocer said it would receive cash proceeds of at least £120m, including a £70m up-front payment when the deal completes early next year.

Swift Partners, a retail investment group that includes former Co-operative Group chief executive Richard Pennycook, will take over Argos’s UK operations.

The deal covers all 667 stores, including 201 standalone shops and 466 locations inside Sainsbury’s supermarkets, as well as more than 450 collection points, the BBC reported.

What the Argos sale means for shoppers

Sainsbury's insisted it would be "business as usual" for customers, staff and suppliers.
Argos will continue operating inside Sainsbury’s stores, while customers will still be able to buy Habitat products and collect Nectar points.

Sainsbury’s acquired Argos and the wider Home Retail Group in 2016 for £1.4 billion, with the brand, founded in 1973 ,becoming famous for its iconic catalogue, once nicknamed the “laminated book of dreams”, as the Daily Mail noted.

Sainsbury's chief executive Simon Roberts stated: "We have carefully considered the future of Argos, and this deal allows us to fully focus on our core food business."

Pennycook also said he remained “strongly” confident in Argos’s future, adding that there were “real opportunities to invest and build on its progress”.

The takeover comes amid continued change across the UK high street, as major retailers adapt to a rapidly shifting landscape.