Sainsbury's Terminates Argos Discussions With JD.com Over Argos Sale

Following the media speculation on 13 September regarding discussions between J Sainsbury plc ("Sainsbury's") and JD.com, Inc. ("JD.com") about a potential sale of Home Retail Group Limited ("Argos"), JD.com has communicated that it would now only be prepared to engage on a materially revised set of terms and commitments which are not in the best interests of Sainsbury's shareholders, colleagues and broader stakeholders. Accordingly, Sainsbury's confirms that it has now terminated discussions with JD.com.

Argos is the UK's second largest general merchandise retailer, with the third most visited retail website in the UK and over 1,100 collection points. Sainsbury's is committed to delivering the strongest and most successful future for Argos customers and colleagues and our 'More Argos, more often' transformation strategy is delivering good progress. We are taking focused action to extend range, enhance digital capabilities and improve relevance to grow frequency and spend in Argos whilst delivering further operating model efficiencies. Argos has traded in line with expectations over the summer, helped by good weather, with H1 sales and profitability stronger against a period last year when Q2 sales were boosted by clearance activity.

Sainsbury's continues to have strong momentum and is focused on delivering its Next Level strategy and commitments. We continue to expect to deliver Retail underlying operating profit of around £1billion and Retail free cash flow of more than £500million in the financial year 2025/26.

Source : J Sainsbury PLC

Image : J Sainsbury PLC

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