Sainsbury’s has agreed to sell Argos to newly formed investment company Swift Partners for at least £120m.
Swift Partners was established for the acquisition by former Co-op boss Richard Pennycook, former Morrisons finance chief Trevor Strain and True Capital co-founder Matt Truman.
The deal includes Argos’ standalone shops, stores inside Sainsbury’s supermarkets, sales channels, brands and logistics network, as well as Argos Care and Argos Pet Insurance.
Swift will also acquire Sainsbury’s Argos distribution centre in Daventry and its sourcing offices in Shanghai and Hong Kong.
Argos will continue trading through its existing standalone stores, supermarket concessions, collection points and online delivery operations.
The transaction is expected to complete in February 2027, with the full separation of Argos and Sainsbury’s anticipated by February 2029.
Usdaw seeks assurances for Argos workers
Usdaw said the sale would inevitably create uncertainty for Argos employees and pledged to focus on protecting members’ jobs, pay and employment conditions.
Usdaw national officer Bally Auluk said: “Our members remain our priority. We recognise this announcement will create uncertainty for those affected, and we will provide support, advice and representation throughout the process.”
The union welcomed Swift’s commitment to retaining Argos’ mix of standalone shops, stores inside Sainsbury’s supermarkets and Local Fulfilment Centres.
It also said Swift had a good track record of engaging with Usdaw and welcomed assurances that any proposed changes would be handled fairly, transparently and in consultation with employees and union representatives.
“Our focus will be on protecting our members’ jobs, terms and conditions and minimising disruption wherever possible,” Auluk added.
Usdaw will continue talks with Sainsbury’s and Swift as further details of the transaction emerge.
Sainsbury’s focuses on food
Sainsbury’s expects to receive at least £70m when the transaction completes, including proceeds from the disposal of the Daventry distribution centre.
A further £50m in deferred consideration is expected over the following three years, although the proceeds will be offset by the costs of separating the two businesses.
The supermarket will retain responsibility for the Argos defined benefit pension scheme and expects to record a non-cash impairment of around £350m as a result of the deal.
Sainsbury’s and Swift have agreed a series of long-term commercial partnerships covering Argos concessions and collection points inside supermarkets, alongside Nectar, Nectar360 and Habitat.
Sainsbury’s chief executive Simon Roberts said the supermarket had “transformed Argos into a leading multichannel retailer”, but had carefully considered what ownership structure would provide the strongest future for the business.
He said: “Swift 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.”
Roberts insisted it would be “business as usual” for Argos employees, customers and suppliers.
Pennycook, who will become executive chair of Argos, said Swift planned to invest in the retailer and strengthen its customer proposition, digital capabilities and nationwide reach.
Sainsbury’s acquired Argos owner Home Retail Group in 2016. It held brief talks over a potential sale to Chinese ecommerce giant JD.com in September 2025, but ended discussions after the prospective buyer proposed materially revised terms.
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