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Sainsbury\u2019s has agreed to sell Argos to Swift Partners for at least \u00a3120 million in cash proceeds, a move intended to allow Sainsbury\u2019s to focus on its core food business and support Argos\u2019s future growth. <\/p>\n
The transaction, expected to complete in February 2027, will result in a broadly neutral impact on Sainsbury\u2019s underlying operating profit and is anticipated to improve retail free cash flow generation. <\/p>\n
Long-term commercial agreements will maintain ongoing value through rental income and Nectar-related income. Sainsbury\u2019s continues to forecast total underlying operating profit between \u00a3975 million and \u00a31,075 million and retail free cash flow exceeding \u00a3500 million in FY27.<\/p>\n
Simon Roberts, chief executive of Sainsbury\u2019s, said: \u201cSainsbury\u2019s 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.<\/p>\n
\u201cSwift 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. <\/p>\n
\u201cFor Sainsbury\u2019s, 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.\u201d<\/p>\n
Richard Pennycook of Swift Partners, said: \u201cWhat attracted us to Argos is the strength of the business, with a trusted brand, loyal customers and dedicated colleagues. We believe strongly in Argos\u2019s future and see real opportunities to invest and build on its progress.<\/p>\n
\u201cArgos\u2019s combination \u2013 of a strong digital business supported by standalone stores, stores inside Sainsbury\u2019s and Local Fulfilment Centres \u2013 gives it a distinctive position in the market and an excellent platform for growth. <\/p>\n
\u201cWe hold Argos senior management in high regard and plan to build on its strengths \u2013 bringing additional experience and skills to complement and augment the existing team. We see clear potential to strengthen Argos\u2019s customer proposition, digital capabilities and nationwide reach.\u201d<\/p>\n
\u2026 more follows<\/p>\n
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