Sainsbury’s in talks to sell Argos to China’s JD.com
Supermarket says sale of the general merchandise retailer will accelerate its ‘transformation’
Sainsbury's is in talks with one of China’s biggest retailers about selling Argos, the general merchandise group it bought almost a decade ago.
The supermarket said on Saturday that it was in discussions with JD.com and that a sale would “accelerate Argos’s transformation”.
“JD.com would bring world-class retail, technology and logistics expertise and invest to drive Argos’ growth and further transform the customer experience,” Sainsbury’s said in a statement issued in response to media speculation. The Telegraph first reported the talks.
Sainsbury’s said a sale would include “commitments from JD.com in relation to Argos for the benefit of customers, colleagues and partners” but added that there was no agreement and no certainty that a sale would take place.
The retailer acquired Argos in 2016 with the takeover of Home Retail Group, but the business has proved difficult at times.
Sainsbury’s 2025 annual report said that double-digit profit growth at the supermarket was “partially offset by lower profits at Argos”, which it valued at £344mn in its most recent accounts.
Sainsbury’s chief executive Simon Roberts is refocusing the retailer on food, but the separation of Argos will probably be complex given the large number of concessions in Sainsbury’s supermarkets following the closure of many standalone stores.
Independent retail analyst Nick Bubb said a sale would be a “disappointing end to the saga”, and the 2016 deal was “very much the idea” of the previous chief financial officer John Rogers.
“Having closed most of the standalone stores in favour of shop-in shops, I’d have thought it would be difficult to disentangle,” he added.
JD has been aiming to diversify outside China and in July launched a takeover bid for German electronics retailer Ceconomy, in what could be one of the largest Chinese acquisitions in Europe in recent years.
Ceconomy operates more than 1,000 stores across Europe under the MediaMarkt and Saturn brands. JD’s bid, which was backed by management and the supervisory board, values the company’s equity at about €2.2bn.
JD previously considered a bid for UK electronics retailer Currys, but withdrew its interest in March 2024.
Apart from evolving from an online operation into a physical retailer with some 10,000 outlets, JD has expanded into sectors including retail, technology, logistics, and healthcare in China. The Nasdaq-listed company is valued at almost $49bn.
JD has been contacted for comment.