Sainsbury’s and Argos form new partnership

By Lauren Mitchell 02/08/2026 3 min read 6 views

Sainsbury’s CEO Simon Roberts has confirmed that Argos will continue to operate inside the supermarket’s stores as part of a £120m deal to sell off the retailer to Swift, a newly established company. The deal will see all 14,000 Argos staff transfer to the new ownership when the transaction completes in February 2027.

Roberts stated that Argos will continue to operate inside Sainsbury’s supermarkets via its current ‘store in store’ and collection point models, with 466 Argos outlets currently located in Sainsbury’s supermarkets and 201 standalone Argos stores.

The partnership between Sainsbury’s and Argos will continue, with Roberts explaining that they’ve agreed a long-term way in which those stores will continue inside Sainsbury’s stores. Nectar will continue to be used across both Argos and Sainsbury’s, and Sainsbury’s will continue to sell Habitat products.

Richard Pennycook, who will serve as executive chair of Argos, said that moving forward, when Simon and his team are opening a new store, they’ll have a conversation about whether they would like Argos in that store.

Pennycook added that Argos will consider opening standalone stores in parts of the country where Sainsbury’s does not have a strong presence.

Roberts described the deal as a positive outcome for both brands, allowing Sainsbury’s to focus on its core business and Argos to operate with a different approach under new ownership.

Pennycook noted that under new ownership, Argos will be able to be more agile and have a greater impact on its customers, stating that they will prioritize Argos in their daily operations.

Sainsbury’s has grown its market share to the highest point in 10 years, with nearly half a million new customers shopping in Sainsbury’s for their big week trolley shop.

The deal is expected to complete in February 2027, with Pennycook stating that today is business as usual and that plans for growth will be developed over the coming months in partnership with the Argos team.

As part of the deal, all Argos colleagues will transfer to the new ownership, with Roberts confirming that the transfer will include staff working across stores and local fulfillment centres.

The partnership between Sainsbury’s and Argos is seen as a key part of the transaction, with Roberts emphasizing that the deal allows them to focus on their respective core businesses.

Roberts pointed out achievements including how the business has grown market share to the “highest point in 10 years”, with “nearly half a million new customers shopping in Sainsbury’s for their big week trolley shop”.

“We came to this moment believing this is exactly the right future ownership for Argos and the right time for Sainsbury’s to really focus on the core of what Sainsbury’s does.”

Pennycook added that under new ownership, there will be a “different focus”.

“We will think of Argos as the first, second and third thing we think of in the morning, and when Argos sits in a very large and successful supermarket business, the colleagues at the top of the organisation are not necessarily thinking in that way.

“So, whilst we have huge respect for what’s been done with business so far, we think we’ll have some opportunity to be agile, to really put the heels of impact in a way that our customers will enjoy.”

The transaction is expected to complete in February 2027.

It is a new chapter.