Supermarket giant Sainsbury's agrees to sell Argos in major £120 million deal
A supermarket chain will sell off a major asset
A supermarket giant will sell part of its business in a multi-million deal with retail veterans who are set to take over.
Sainsbury’s has agreed to sell its Argos business to seasoned retail professionals including the former Co-operative Group boss Richard Pennycook in a deal worth at least £120 million.
The grocery chain said Swift Partners will buy 201 Argos standalone stores, as well as its 466 stores within Sainsbury’s shops based on a long-term agreement and a further 466 collection points, logistics network, pet insurance and product warranty cover.
Multiple Argos sites sit in the Hampshire area including stores and collection points in Portsmouth, Fareham, Hayling Island, Waterlooville, Gosport and Bishops Waltham.
Swift will also buy Sainsbury’s distribution centre in Daventry and its sourcing offices located in Shanghai and Hong Kong as part of the deal.
Simon Roberts, chief executive of Sainsbury’s, said: “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.”
Sainsbury’s bought Argos for £1.4 billion in 2016, when it had some 845 standalone stores. But many of those stores have since been shut, with sales at the chain flagging in recent years.
Bally Auluk, national officer at retail trade union Usdaw, added: “We recognise this announcement will create uncertainty for those affected, and we will provide support, advice and representation throughout the process.
“Our focus will be on protecting our members’ jobs, terms and conditions and minimising disruption wherever possible.”