Sainsbury’s has agreed to sell Argos for £120m to Swift Partners, a company set up by three experienced retail executives, as it seeks to concentrate investment on its core food business. The deal marks a significant reversal of Sainsbury’s 2016 purchase of Argos’s parent group for £1.3bn and reflects the supermarket’s “food first” strategy amid tight retail margins and cautious consumer spending.

Swift Partners is led by former Co-op and Morrisons boss Richard Pennycook, alongside former Morrisons executive Trevor Strain and Matt Truman. Argos, which has more than 660 UK shops and 1,100 collection points, is expected to continue operating normally; completion is due in early 2027, with full separation anticipated by early 2029, while store-in-store, Nectar and Habitat arrangements will continue under long-term agreements.