Sainsbury's is selling Argos to a group of retail veterans for £120 million, with the new owners signalling they could bring back the retailer's printed catalogue, which was discontinued in 2020 after nearly five decades in print.
The buyer is Swift Partners, a newly formed investment firm made up of Richard Pennycook, former chief executive of Co-op; Trevor Strain, former chief operating officer of Morrisons; and Matt Truman, co-founder of investment firm True Capital.
The deal is expected to complete in February next year, with a full separation of the Argos business from Sainsbury's by 2029. Sainsbury's boss Simon Roberts said the sale would "create the strongest possible future for Argos."
The £120 million sale price is a fraction of the £1.4 billion Sainsbury's paid when it acquired Argos in 2016. Sales at the retailer have tumbled in recent years due to competition from online giants including Amazon and Shein.
Catalogue could return
Pennycook said the heritage of Argos is "a very important part of its brand" and that his team wants to "build on that strong heritage," while also making the brand relevant to customers today. He did not rule out returning the catalogue to print.
Pennycook said the catalogue was the "first thing" his own daughter asked him about when the deal was announced, and that he has childhood memories of redeeming the retailer's green shield stamps. Argos stopped printing its twice-yearly catalogue in 2020 after producing more than one billion copies since 1973. At its peak, it was the most widely printed publication in Europe, and only the Bible was found in more UK homes.
Retail expert Jonathan De Mello said the nostalgia for the physical catalogue reflects a broader shift in shopping behaviour. He said online portals are efficient for intentional purchases but "strip away the casual, cross-category browsing that print directories naturally invited."
Chris Beauchamp, an analyst at investing platform IG, cautioned that "nostalgia alone doesn't save a company" and said Argos would need a distinctive offering that also competes on price.
Stores and jobs
The deal includes 201 standalone Argos stores, 466 shops within Sainsbury's supermarkets and a further 466 collection points. Swift Partners is also acquiring the Argos logistics network, pet insurance business and product warranty cover.
Pennycook said the ability for customers to pick up products from stores within hours of ordering online is "a unique part of the model" and a "great strength." He also said his team may consider opening new standalone stores in parts of the country where Argos has no existing presence or cannot operate within a Sainsbury's.
Sainsbury's did not disclose how many staff would transfer to Swift Partners, prompting concern about job security. Bally Auluk, national officer at the union Usdaw, welcomed the new owners' commitment to shops but acknowledged the announcement would "create uncertainty for those affected." Roberts insisted the situation is "business as usual" for now.
Customs duty pressure
Sainsbury's has previously argued that UK retailers like Argos are disadvantaged by a customs duty loophole that allows overseas firms such as Shein and Temu to send parcels worth up to £135 to the UK without paying duty. Roberts denied that the loophole was the reason for the sale.
Pennycook said the situation was "not right" and welcomed the Government's stated intention to close the loophole before October 2028, though he indicated the timeline was causing UK firms to lose out on tax revenue and putting them "at a competitive disadvantage." The deal follows the collapse last year of separate discussions between Sainsbury's and Chinese e-commerce firm JD over a possible sale of Argos.
