Sainsbury’s said customers, suppliers and staff should see no immediate change. Argos will continue operating standalone stores and outlets inside Sainsbury’s supermarkets, while customers will still be able to collect Nectar points and purchase Habitat products.
Argos Stores Will Continue Operating
Argos currently operates 667 stores across the UK, including 201 standalone locations and 466 outlets inside Sainsbury’s supermarkets. It also runs more than 450 collection points.
Long-term commercial agreements will allow Argos to remain inside Sainsbury’s stores following the sale. The two companies will also continue working together on Habitat products, the Nectar loyalty programme and other services during a staged separation expected to finish by 2029.
Swift Partners was formed to acquire the retailer and is led by former Co-operative Group chief executive Richard Pennycook, former Morrisons finance chief Trevor Strain and retail investor Matt Truman. Pennycook said the group saw opportunities to invest in Argos and build on its digital and store-based model.
He also said Swift Partners could consider opening more standalone Argos stores. The return of the retailer’s printed catalogue, which was discontinued as customers moved online, has not been ruled out.
Sale Follows Previous Attempts to Find a Buyer
Sainsbury’s acquired Argos, Habitat and the other Home Retail Group brands in 2016 for about £1.4 billion. It later sold the financial services operation behind the Argos Card for around £720 million in 2024.
Talks to sell the remaining Argos business to Chinese online retailer JD.com ended without an agreement in September 2025. The current transaction follows what analysts described as a prolonged sale process.
The official sale announcement said Sainsbury’s expects to record a non-cash impairment charge of about £350 million. Its lease-adjusted net debt is expected to fall by around £250 million, mainly because of lower lease liabilities.
Sainsbury’s Focuses Investment on Food
Chief executive Simon Roberts said selling Argos would allow both businesses to pursue their priorities with greater focus. He added that Sainsbury’s would direct more capital towards its grocery operations while maintaining its commercial relationship with Argos.
The retailer’s first-quarter trading statement showed Sainsbury’s sales increased by 3.1% during the 16 weeks to June 20, 2026. Argos sales declined by 0.5% during the same period.
Retail analyst Catherine Shuttleworth said dedicated ownership could help Argos develop further as a digital-first retailer. Its same-day collection model and national store network give it a physical fulfilment presence that differs from online-only competitors.
The Usdaw union said the announcement would create uncertainty for employees. However, it welcomed Swift Partners’ stated commitment to retaining Argos’s standalone stores, outlets within Sainsbury’s supermarkets and local fulfilment centres.
Featured image credits: Wikimedia Commons
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