Sainsbury’s will sell off Argos for more than £120m to a newly-established company formed by retail heavyweights Richard Pennycook, Trevor Strain and Matt Truman.
Called Swift, the acquiring company will “bring expertise and investment to accelerate growth and innovation” at Argos, while allowing Sainsbury’s to “fully focus” on its core food business, the supermarket said.
Pennycook was chief executive of the Co-operative Group from 2014-2017, and currently chairs both Two Sisters Food Group and On The Beach. Strain, meanwhile, was CFO, then COO at Morrisons, and Truman is the executive chair and co-founder of retail investment firm True Capital, which has backed the venture financially.
The three hold Argos senior management in “high regard”, Pennycook said, and will “build on its strengths” with additional experience and skills to complement the existing team.
Expected to complete in February 2027, the deal will leave Sainsbury’s with a simpler business with higher margins, higher growth, and stronger free cash flow generation, the supermarket claimed.
Argos has suffered from patchy growth since the 2008 recession, and in recent years has suffered intense competition from online retailers such as Amazon, Temu and Shein.
While volumes have largely held up, pricing pressure has subdued any real revenue growth: in its latest quarter to 20 June 2026 Argos revenues fell 0.5% to £1.1bn despite 2.2% volume growth.
Sainsbury’s CEO Simon Roberts said his team had “carefully considered what it will take to create the strongest possible future for Argos”.
“Swift brings retail leadership, operational expertise, technology capability and long-term investment,” he added.
“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.”
Thanking Argos colleagues for their hard work, Roberts assured them and suppliers alike it would be “business as usual”.
Pennycook said the Swift team saw “real opportunities” to build on foundations laid by Sainsbury’s.
“Argos’s combination – of a strong digital business supported by standalone stores, stores inside Sainsbury’s and local fulfilment centres – gives it a distinctive position in the market and an excellent platform for growth,” he said.
“We see clear potential to strengthen Argos’s customer proposition, digital capabilities and nationwide reach.”
The transaction will bring at least £70m in cash on completion, with deferred consideration of £50m to be made over the following three years, though these cash receipts are expected to be offset by separation costs over the three years.
The transaction is expected to result in a £350m non-cash impairment for Sainsbury’s.
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