Sainsbury's sells Argos for £120 million to focus on food business

Sainsbury's is selling the Argos retail chain for £120 million, a move that allows the supermarket giant to concentrate on its primary food operations. The deal was announced Friday, with a trio of retail veterans forming a new entity, Swift Partners, to acquire the catalogue shopping business.

This divestment marks a significant shift for Sainsbury's, which bought Argos more than a decade ago for over £1 billion. The sale reflects a strategic decision to streamline its business and prioritize growth in its core grocery sector, where it faces intense competition. The proceeds from the sale will likely be reinvested into strengthening its food offerings and digital capabilities.

The acquisition by Swift Partners, led by experienced retail professionals, signals a new chapter for Argos. The veteran team is expected to leverage their expertise to revitalize the brand and adapt it to the evolving retail landscape. Further details on the future plans for Argos under new ownership are anticipated.