Sainsbury’s has announced that Argos disposal talks with JD.com are over, with the parties failing to reach mutually agreeable terms.
A flurry of reports over the weekend suggested that Argos was readying a deal to offload its Argos business to JD.com. However, Sainsbury’s has ended talks with Chinese e-commerce giant JD.com over a potential sale of Argos after the buyer demanded “materially revised” terms that were deemed not in shareholders’ best interests.
The supermarket chain confirmed it had terminated discussions following media speculation about the deal on 13 September. JD.com’s revised proposals included new terms and commitments that Sainsbury’s said would not benefit shareholders, staff or other stakeholders.
Argos remains Britain’s second-largest general merchandise retailer. It operates the UK’s third most popular retail website and more than 1,100 collection points nationwide.
However, the business has not achieved the potential that investors may have expected under Sainsbury’s ownership, and a sale would allow the group to focus on its grocery business.
Despite the obvious benefits of disposing of Argos, Sainsbury’s said it remains committed to Argos’s future through its “More Argos, more often” transformation strategy, which aims to expand product ranges and enhance digital capabilities. The retailer reported that Argos had traded in line with expectations over the summer, aided by favourable weather conditions.
First-half sales and profitability showed improvement compared to the same period last year, when second-quarter sales were inflated by clearance activities.
The supermarket giant maintains its financial guidance for 2025/26, expecting retail underlying operating profit of around £1bn and retail free cash flow exceeding £500m.