Sainsbury's Unloads Argos to Swift Partners for £120m

Sainsbury's has agreed to sell its Argos chain to Swift Partners, a new investment company, for at least £120m. The deal transfers Argos' standalone stores, supermarket concessions, sales channels, brands, logistics network, and the Argos Care and Pet Insurance businesses. Swift also takes control of the Daventry distribution centre and sourcing offices in Shanghai and Hong Kong.

The transaction splits into two payments. Sainsbury's expects to receive at least £70m when the deal completes, the bulk from the Daventry disposal. A further £50m in deferred consideration is due over the three years after completion. The supermarket will record a non-cash impairment of roughly £350m. Sainsbury's retains responsibility for the Argos defined benefit pension scheme.

Swift Partners was formed by former Co-op boss Richard Pennycook and ex-Morrisons finance chief Trevor Strain. True Capital co-founder Matt Truman is also a partner. Pennycook will become executive chair of Argos. He said Swift plans to invest in the retailer and strengthen its customer proposition, digital capabilities, and nationwide reach.

Completion is expected in February 2027. Full separation of Argos and Sainsbury's is anticipated by February 2029. The two companies have agreed long-term commercial partnerships covering Argos concessions and collection points inside Sainsbury's supermarkets, plus Nectar, Nectar360, and Habitat.

Sainsbury's chief executive Simon Roberts said the retailer had transformed Argos into a leading multichannel retailer. He added that the company had carefully considered what ownership structure would give the business the strongest future. "Swift brings retail leadership, operational expertise, technology capability and long-term investment," Roberts said. He described the transition as "business as usual" for Argos employees, customers, and suppliers.

The union Usdaw said the sale creates uncertainty for Argos workers. National officer Bally Auluk said the union would focus on protecting members' jobs, pay, and conditions. "We recognise this announcement will create uncertainty for those affected, and we will provide support, advice and representation throughout the process," Auluk said. Usdaw welcomed Swift's commitment to retaining the existing mix of stores and Local Fulfilment Centres. The union said it will continue talks with Sainsbury's and Swift.

Argos has been part of Sainsbury's since the supermarket acquired Home Retail Group in 2016. Sainsbury's held brief talks about a potential sale to Chinese e-commerce giant JD.com in September 2025, but those discussions ended after JD.com proposed materially revised terms.

The deal gives Sainsbury's a clearer path to focus on its core grocery business. The supermarket will retain the Nectar loyalty programme and Habitat furniture brand, both integrated with Argos. The long-term commercial agreements ensure Argos collection points remain inside Sainsbury's stores, preserving footfall and cross-sell opportunities.

For Swift, the acquisition provides a well-known retail brand with a national store network and a strong online operation. The investment company's team has deep retail experience, including Pennycook's turnaround of the Co-op and Strain's financial stewardship at Morrisons.

The transaction is subject to regulatory approval and is expected to close in February 2027. The full operational separation of Argos from Sainsbury's is targeted for February 2029. Usdaw will continue discussions with both parties as details emerge.