- Published
Sainsbury's has agreed to sell Argos for £120m after a long process of trying to offload it as the supermarket chain aims to focus on its main food business.
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chain → publish → business
Sainsbury's said it would be "business as usual" for Argos customers, staff, and suppliers.
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it → say → customers
Shoppers will see no change as Argos will still operate in Sainsbury's shops, sell Habitat products, and offer Nectar points.
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Argos → see → points
The buyer, Swift Partners, is a company that has been created to buy the brand and includes former Co-operative Group boss Richard Pennycook.
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that → create → Pennycook
There are 667 Argos shops across the UK, with 201 operating as standalone stores and 466 operating within Sainsbury's.
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466 → be → Sainsbury
It also has more than 450 collection points.
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It → have → points
Founded in 1973, Argos opened shops where customers browsed its catalogues and placed their orders, with products being delivered to tills from warehouses connected to the stores.
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products → found → stores
The Argos catalogue, once described by comedian Bill Bailey as the "laminated book of dreams", used to be a physical book.
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catalogue → describe → dreams
Argos no longer prints this hefty tome, with its full range now available online instead.
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range → print → tome
In store, customers can browse the product collection on tablet computers.
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customers → browse → computers
Sainsbury's has been trying to sell Argos - which has been seen as an underperforming brand - for some time.
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which → try → time
Sainsbury's bought Argos – together with Habitat and all the other retail brands owned by Home Retail Group – in 2016 for £1.4bn.
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Sainsbury → buy → 1.4bn
It then sold Argos financial services, which runs the Argos card, for around £720m in 2024.
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which → sell → 2024
In September last year, its talks to sell the rest of Argos to Chinese online retailer JD.com fell through.
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talks → sell → JD.com
Sainsbury's chief executive Simon Roberts said that all of Argos's nearly 14,000 staff would be transferred over to Swift Partners as part of the deal.
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all → say → deal
He also confirmed that Argos would continue to operate in Sainsbury's shops; Nectar will continue to be used across both Argos and Sainsbury's; and Sainsbury's will continue to sell Habitat products
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Sainsbury → confirm → products
Swift Partners' Pennycook said he believed "strongly in Argos's future and see real opportunities to invest and build on its progress".
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he → say → progress
The deal is expected to be completed in February next year.
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deal → expect → February
Pennycook said there was the potential to open new standalone Argos shops – and did not rule out the possibility of the return of its print catalogue.
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Pennycook → say → catalogue
Retail expert Catherine Shuttleworth said Argos has been a "distraction" from Sainsbury's main food business.
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Argos → say → business
She said having new owners focused entirely on it gives Argos the potential to be a "really digital-first business".
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owners → say → potential
She praised the user-friendliness of its app and said its click-and-collect model, where customers can order something online and pick it up from an Argos shop the same day, means it can give a "bloody nose" to online retail giants like Amazon.
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it → praise → Amazon
Retail analyst Clive Black said he had always questioned whether Argos was "wholly aligned" with Sainsbury's grocery business, describing the supermarket group's attempt to sell Argos as "challenging and prolonged".
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Argos → say → Argos
He said Argos has been a "suboptimal performer from a financial perspective".
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Argos → say → perspective
In Sainsbury's latest results for the first three months of this year, group-wide sales were up 3.1%, although sales for Argos specifically had dipped 0.5%.
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sales → dip → Argos
Bally Auluk, national officer at Usdaw, a union which represents Argos workers, said the announcement would create uncertainty, but that it welcomed Swift's commitment to "keeping the model of store in stores, standalone stores and local fulfilment centres".
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it → represent → stores
The Aporia
