Sainsbury’s is to sell Argos in a £120 million deal

Sainsbury’s is selling Argos for £120 million as the supermarket giant sharpens its focus on what it does best: food. The retailer has agreed to sell the household name to Swift Partners, a newly formed company led by a heavyweight team of retail veterans, including former Co-op boss Richard Pennycook and ex-Morrisons COO Trevor Strain, alongside Matt Truman and investment firm True Capital. The move marks a major shift for Sainsbury’s, which says the sale will help simplify the business, boost profitability and free up more cash to invest in its growing grocery operation.

The new owners have big plans for Argos. Swift Partners says it wants to build on the brand’s strong reputation, invest in innovation and accelerate growth across the business. Pennycook will step in as executive chair, while Strain and Truman will join the board and work alongside Argos’ current leadership team. Despite changing hands, shoppers shouldn’t expect dramatic changes overnight. Argos will continue to operate from Sainsbury’s stores, sell Habitat products and remain part of the Nectar loyalty scheme through a series of long-term commercial agreements.

Sainsbury’s CEO Simon Roberts said the retailer had successfully transformed Argos into one of the UK's leading multichannel retailers, but believes the time is right for both businesses to pursue their own growth plans. He said Swift Partners brings the right mix of retail expertise, technology know-how and long-term investment to take Argos to its next chapter.

For Sainsbury’s, the deal is another step in its strategy to concentrate resources on its core food business, where it sees significant opportunities for future growth. Roberts also moved to reassure staff, customers and suppliers that it will be "business as usual" throughout the transition.

Pennycook described Argos as a trusted brand with loyal customers and dedicated colleagues, highlighting its unique mix of online shopping, standalone stores, in-store Sainsbury’s locations and local fulfilment centres. That combination, he said, gives Argos a strong position in a competitive retail market and creates plenty of opportunities to improve its customer offer, digital capabilities and nationwide reach.

Swift Partners plans to work closely with the existing management team while bringing in additional expertise to help drive the next phase of growth. The deal is expected to complete in February 2027, with the full separation of the two businesses likely to take another two years after that.

For customers, it should be a relatively seamless transition. For Sainsbury’s, it's a clear signal that the company is betting heavily on food. For Argos, it could be the start of a fresh chapter under owners focused solely on growing the iconic retail brand.