Sainsbury’s sells Argos to Swift Partners for £120m – Daily Business

Sainsbury’s has agreed to sell Argos to Swift Partners for at least £120 million in cash proceeds, a move intended to allow Sainsbury’s to focus on its core food business and support Argos’s future growth.

The transaction, expected to complete in February 2027, will result in a broadly neutral impact on Sainsbury’s underlying operating profit and is anticipated to improve retail free cash flow generation.

Long-term commercial agreements will maintain ongoing value through rental income and Nectar-related income. Sainsbury’s continues to forecast total underlying operating profit between £975 million and £1,075 million and retail free cash flow exceeding £500 million in FY27.

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.

“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.”

Richard Pennycook of Swift Partners, 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.”

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