Hundreds of jobs at risk as UK supermarket chains sells Argos

In a deal worth at least £120 million, Sainsbury’s is set to sell 201 standalone Argos shops, as well as its 466 stores within Sainsbury’s shops based on a long-term agreement.

After Sainsbury’s acquired Argos in 2016 hundreds of stores shut down with Argos operating mostly inside Sainsbury’s supermarkets.

The only standalone Argos shop in Oxfordshire is in Fairacres Retail Park in Abingdon.

Meanwhile Argos operates inside Sainbury’s in stores in Oxford, Witney, Didcot and numerous others.

Under the terms of the deal, the stores will be controlled by Swift Partners.

Swift Partners will also buy a further 466 collection points nationwide under the new agreement.

Ownership of Sainsbury’s expansive logistics network will also transfer to the investment firm.

The investment group is a recently established company led by retail industry stalwarts, notably Richard Pennycook, a veteran of Co-operative Group, and Trevor Strain, former chief operating officer at Morrisons.

The duo, known for their expertise in the retail sector, also have backing from True Capital, a retail investment and advisory enterprise helmed by Matt Truman.

The acquisition by Swift Partners signals a new direction for Sainsbury’s.

The supermarket giant said its decision to sell Argos’ assets aligns with its refocused strategy towards core food and grocery operations.

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While the transfer of ownership is expected to be completed by February next year, Sainsbury’s did not reveal how many employees will make a transition to Swift Partners under the agreement.

Sainsbury’s Chief Executive, Simon Roberts, commented on the deal: “As we have strengthened our core food business, we have carefully considered what it will take to create the strongest possible future for Argos.

“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.”

He also assured that for Argos employees and customers, it would continue to be ‘business as usual’ following the agreed sale.

Upon completion of the acquisition, Mr Pennycook will be appointed as the executive chairman of Argos.

The stalwart in retail will be dedicating three days a week to steering Argos.

Mr Strain and Mr Truman will join him on the Argos board.

Mr Pennycook stressed his faith in Argos’s potential following the acquisition, saying: “We believe strongly in Argos’s future and see real opportunities to invest and build on its progress.

“We see clear potential to strengthen Argos’s customer proposition, digital capabilities and nationwide reach.”

The sale brings to a close years of speculation surrounding the future of Argos after Sainsbury’s purchased the retailer for £1.4 billion back in 2016 when it boasted 845 standalone stores.

Changing business dynamics and dwindling sales have compelled Sainsbury’s to undergo a revamp of Argos, which included closing several standalone stores.

The move, however, has not deterred trade union Usdaw, who welcome the deal.

National officer Bally Auluk explained: “Our focus will be on protecting our members’ jobs, terms and conditions and minimising disruption wherever possible.”