Sainsbury’s sells its Argos business to Swift Partners for £120million
Sainsbury’s has agreed to sell Argos to retail investment group Swift Partners for at least £120 million, ending a decade of ownership. The move reflects Sainsbury’s strategy to concentrate on its core food business, while Swift says it will invest in and transform Argos amid intense online competition and weaker consumer spending.
The deal includes Argos standalone shops, concessions in Sainsbury’s supermarkets, logistics operations, insurance and warranty products, a Daventry distribution centre, and sourcing offices in Shanghai and Hong Kong. Sainsbury’s expects £70 million on completion in February 2027, with full separation by February 2029; all 14,000 Argos employees are due to transfer. Sainsbury’s bought Argos in 2016 for £1.4 billion, but the retailer has struggled against lower-cost rivals including Shein and Temu.
- Sainsbury’s sells Argos to Swift Partners for at least £120 million.
- The transaction is expected to complete in February 2027.
- All 14,000 Argos staff are expected to transfer.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters of the sale would argue that it allows Sainsbury’s to focus capital and management attention on its core grocery and retail operations, while securing at least £120 million in cash for investment, debt reduction or shareholder value. They may also say a specialist new owner could give Argos the dedicated strategy and flexibility needed to compete in a fast-changing non-food retail market, potentially protecting its long-term viability and jobs.
The case against
Critics would argue that Argos has been an important part of Sainsbury’s broader retail offer, helping attract customers through convenient collection points and complementary non-food sales. They may question whether the price adequately reflects the brand, its customer base and its strategic value, and warn that a change of ownership could bring uncertainty for staff, suppliers and customers if the new owner pursues restructuring or a different operating model.