Sainsbury’s has agreed to sell Argos to Swift Partners, a new company established for this acquisition by Richard Pennycook, Trevor Strain and Matt Truman alongside True Capital (owner of The Cotswold Company), "combining extensive experience of retail ownership and leadership with expertise in technology, digital innovation and AI transformation".
The move, which Sainsbury's says will enable it to focus on its core food business while supporting the next phase of Argos' growth, will see Swift "build on the strength of the Argos brand, multichannel model and store network, bringing expertise and investment to accelerate growth and innovation in a fast-moving and competitive general merchandise market".
Simon Roberts, chief executive of J Sainsbury, comments: “Sainsbury’s has transformed Argos into a leading multichannel retailer with millions of customers and thousands of talented colleagues. As we have strengthened our core food business, we have carefully considered what it will take to create the strongest possible future for Argos.
“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. Richard, Trevor and Matt understand and value the Argos brand, share our values and will accelerate Argos’s transformation through their dedicated expertise and long-term investment.
“I would like to thank Argos colleagues for all of their commitment and hard work. Today is an important next step in building the strongest future for Argos and I would like to reassure our colleagues, customers and suppliers that it’s business as usual."
Under the terms of the sale, Sainsbury’s expects to realise cash proceeds of at least £120m. At least £70m is expected to be received upon completion (expected in February 2027, with full separation expected by February 2029). This sum will include proceeds from the sale of an Argos distribution centre.
Deferred consideration of £50m is expected to be received over the following three years.
"These cash receipts are expected to be offset by separation costs over the three years post-completion," Sainsbury's continues. "Lease adjusted net debt is expected to reduce by around £250m, primarily reflecting reduced lease liabilities.
"Sainsbury’s will retain responsibility for the Argos defined benefit pension scheme. This scheme reported a surplus on an IAS basis of £143m as at 28th February 2026. The transaction is expected to result in a non-cash impairment of around £350m.
"Sainsbury’s and Argos have entered into a series of commercial agreements in relation to Argos stores and collection points inside Sainsbury’s, Nectar, Nectar360 and Habitat. These agreements are designed to support continuity for customers, colleagues and suppliers, while enabling both businesses to benefit from an ongoing relationship."
Swift Partners' Richard Pennycook comments: “What attracted us to Argos is the strength of the business, with a trusted brand, loyal customers and dedicated colleagues. We believe strongly in Argos' future and see real opportunities to invest and build on its progress.
“Argos's combination – of a strong digital business supported by stand-alone stores, stores inside Sainsbury’s and local fulfilment centres – gives it a distinctive position in the market and an excellent platform for growth. We hold Argos senior management in high regard and plan to build on its strengths – bringing additional experience and skills to complement and augment the existing team. We see clear potential to strengthen Argos’ customer proposition, digital capabilities and nationwide reach.
“Trevor, Matt and I share a strong belief in Argos, its people and what it can achieve in the years ahead. We are all making a long-term commitment to the business and look forward to working closely with the team to deliver even more for customers, while maintaining Argos’ strong values.”
Richard will serve as Argos' executive chair and dedicate three days a week to the business, while Trevor and Matt will serve on its board, working closely with the Argos leadership team.
The transaction has been structured to support continuity for customers, staff and suppliers, while enabling Argos to operate under dedicated ownership. Argos will continue to trade through its established channels, including stand-alone stores, stores inside Sainsbury’s, online delivery and collection points, with transitional service arrangements supporting an orderly separation following completion.
The Argos business being acquired by Swift includes Argos standalone stores and store-in-store operations located within Sainsbury’s stores based on a long-term agreement, in addition to Argos’ sales channels, brands, logistics networks, Argos Care and Argos Pet Insurance. In addition, Swift will acquire Sainsbury’s distribution centre in Daventry and Sainsbury’s sourcing offices in Shanghai and Hong Kong.
Swift will assume the leases on Argos’s property portfolio. Sainsbury’s will remain ultimately liable for a limited number of property leases and ongoing parental guarantees, which will unwind over time.
In conjunction with the acquisition of Argos, Sainsbury’s will enter into a series of commercial agreements with Swift. These include agreements for Sainsbury’s to continue to sell Habitat products and Argos’ ongoing usage of Sainsbury’s key products and services including collection points, Nectar Loyalty Programme and Nectar 360 Insight and Retail Media Network Services.
The transaction is subject to the receipt of certain customary regulatory and completion of other conditions, and is expected to complete in February 2027. Until completion, Argos and Sainsbury’s will continue to operate as they do today, with no change for customers as a result of today’s announcement.
