Sainsbury’s Shares Jump After £120m Argos Sale to Swift Partners

Shares in J Sainsbury plc (LON: SBRY) rose sharply on Friday after the supermarket giant announced it has agreed to sell Argos to Swift Partners, a newly formed retail investment vehicle.

Sainsbury’s stock opened at 379p, up from Thursday’s close of 355.7p, and gained as much as 7% intraday to a high of 380.3p, before settling around 366.8p — a rise of roughly 3.1% on the day, on elevated trading volume.

Under the deal, Sainsbury’s will receive cash proceeds of at least £120 million, comprising an upfront payment of at least £70 million on completion and £50 million in deferred consideration over three years, alongside proceeds from the sale of the Argos distribution centre in Daventry.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Swift Partners — backed by former Morrisons chief executive Trevor Strain, ex-Co-op boss Richard Pennycook, Matt Truman and retail investor True Capital — will also assume Argos’s property leases, cutting Sainsbury’s lease-adjusted net debt by around £250 million.

Investors welcomed the move as a decisive step in CEO Simon Roberts’ strategy to sharpen focus on Sainsbury’s core grocery business, following prior disposals of its banking and Argos Financial Services units.

The transaction is expected to be broadly neutral to underlying operating profit and low single-digit EPS accretive, with long-term commercial tie-ups covering Nectar, Nectar360 and in-store concessions preserving ongoing revenue links.

Completion is targeted for February 2027, with full separation by 2029. Sainsbury’s reaffirmed FY27 guidance of £975m-£1,075m underlying operating profit.