Sainsbury’s has agreed to sell Argos to Swift Partners for at least £120 million, ending a decade of ownership and sharpening the supermarket group’s focus on food retail. The transaction is expected to complete in February 2027, while the two businesses are due to separate fully by February 2029, according to reports from the Financial Times and The Guardian.
Swift Partners was formed for the acquisition by Richard Pennycook, former chief executive of the Co-operative Group, former Morrisons executive Trevor Strain and investor Matt Truman. The buyer plans to operate Argos as a separate business while maintaining important commercial links with Sainsbury’s.
Swift Partners takes control of the Argos network
The sale covers Argos’s retail operation, including standalone shops and locations inside Sainsbury’s supermarkets. Argos is expected to continue trading normally during the transition, with no immediate change for customers, suppliers or employees.
Sainsbury’s and Swift Partners have agreed long-term arrangements covering Argos sites inside Sainsbury’s stores, the Nectar loyalty programme and the Habitat brand. Habitat products are expected to remain available through both businesses under a licensing agreement, while customers will still be able to use much of the existing collection network.
Pennycook said the buyer was attracted by Argos’s trusted brand, loyal customers and combination of digital retail, physical stores and local fulfilment centres. Sainsbury’s Chief Executive Simon Roberts said the deal would allow each business to build on its own strengths.
Sainsbury’s puts more weight behind grocery growth
The Sainsbury Argos sale follows a period in which the group’s food business has outperformed its general merchandise operations. In its results for the year ended February 28, 2026, Sainsbury’s reported grocery sales growth of 5.2%, while Argos sales increased by 0.7% to £4.1 billion in a highly competitive market.
The gap widened in the first quarter of the current financial year. Sainsbury’s reported grocery sales growth of 3.6% for the 16 weeks ended June 20, 2026, while Argos sales fell by 0.5%, according to the company’s June trading statement.
Argos has continued to attract customers, but lower average selling prices and weak demand for some higher-cost products have limited revenue growth. The sale gives Sainsbury’s more scope to direct investment toward supermarkets, convenience stores and online grocery, where management sees stronger margins and steadier demand.
A decade-long retail combination comes to an end
Sainsbury’s acquired Home Retail Group, the owner of Argos and Habitat, for about £1.4 billion in 2016. The combination was intended to create a large food and general merchandise retailer with a stronger online and collection network.
The £120 million sale price is far below the original acquisition value, although the figures are not directly comparable. Sainsbury’s has already separated and sold other assets linked to the wider business. In October 2024, it agreed to sell the Argos Financial Services card portfolio to NewDay for about £720 million, according to the company’s official announcement.
Sainsbury’s also explored a sale of Argos to Chinese ecommerce group JD.com in 2025. Those discussions ended after JD.com proposed materially revised terms that Sainsbury’s said were not in the interests of shareholders, employees and other stakeholders. The company confirmed the termination in a September 2025 statement.
February 2027 is the next key date
The Swift Partners transaction remains subject to completion requirements. Until the deal closes, Argos will remain part of Sainsbury’s and continue operating through its existing channels.
After completion, the companies will begin a longer separation process covering technology, logistics, property and other shared operations. The retained commercial agreements mean customers are still likely to see Argos inside Sainsbury’s stores, use Nectar across the businesses and buy Habitat products after ownership changes.
For Sainsbury’s, the sale closes a costly effort to combine grocery and non-food retail under one owner. For Argos, it starts a new phase under investors who say they plan to back its digital platform, store network and fulfilment model.
