Sainsbury’s to sell Argos to Swift Partners in £120m deal
Sainsbury’s is to sell Argos to Swift Partners in a £120 million deal as it looks to focus on its food business.
Swift is a new company set up for the acquisition by former Co-op boss Richard Pennycook and former Morrisons chief operating officer Trevor Strain, alongside Matt Truman and True Capital.
Subscribe to TRBThe supermarket said the move will enable it to create a simpler business with higher margins, higher growth and stronger free cash flow generation.
Swift is planning to build on the strength of the Argos brand and invest in innovation and accelerating growth. Pennycook will serve as executive chair three days a week, while Strain and Truman will sit on the Argos board, working closely with the existing Argos leadership team.
Simon Roberts, chief executive of Sainsbury’s, said: “Sainsbury’s has transformed Argos into a leading multichannel retailer with millions of customers and thousands of talented colleagues.
“As we have strengthened our core food business, we have carefully considered what it will take to create the strongest possible future for Argos.
“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.”
“For Sainsbury’s, this is a further step forward in our strategy. Having rebuilt the core strengths of our food business, this agreement allows us to focus all our resources and investment on the significant opportunities ahead.”
A series of commercial agreements will be put in place to enable Argos to continue operating in Sainsbury’s stores, sell Habitat products, and offer customers Nectar points. Sainsbury’s said this will ensure continuity for customers, colleagues and suppliers, while enabling both businesses to benefit from an ongoing relationship.
Roberts added: “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.”
The transaction is expected to complete in February 2027 with the full separation expected two years later.
Pennycook said: “What attracted us to Argos is the strength of the business, with a trusted brand, loyal customers and dedicated colleagues. We believe strongly in Argos’s future and see real opportunities to invest and build on its progress.
“Argos’s combination – of a strong digital business supported by standalone stores, stores inside Sainsbury’s and local fulfilment centres – gives it a distinctive position in the market and an excellent platform for growth.
“We hold Argos senior management in high regard and plan to build on its strengths – bringing additional experience and skills to complement and augment the existing team. We see clear potential to strengthen Argos’s customer proposition, digital capabilities and nationwide reach.“
