Sainsbury’s has halted discussions to sell its retail arm, Argos, to JD.com, one of China’s largest retailers. The supermarket chain confirmed on Sunday that talks with JD.com had ended, stating that the proposed terms from JD.com were not favorable for its shareholders or other stakeholders. Sainsbury’s originally acquired Argos for over £1 billion less than a decade ago.
On Saturday, Sainsbury’s announced the negotiations, emphasizing that a sale would expedite the transformation of Argos, which has increasingly shifted towards online sales and integration within larger Sainsbury’s stores. However, a day later, the company declared that discussions had ceased, receiving communication from JD.com about materially revised terms that did not align with Sainsbury’s interests.
JD.com, distinct from JD Sports, also offers supply chain technology and services beyond retail. The company previously withdrew from a proposed acquisition of UK retailer Curry’s. Argos is positioned as the UK’s second-largest general merchandise retailer, trailing Tesco, and is noted for its online presence and nearly 200 standalone locations, alongside over 1,100 collection points primarily in Sainsbury’s stores.
Prior to the collapse of the deal, Sainsbury’s promoted the potential benefits of partnering with JD.com, suggesting that the latter’s expertise could enhance Argos’s growth and customer experience. It is likely that any sale would have fetched a lower price than the £1.1 billion originally paid for Argos, especially considering that Sainsbury’s recent valuations placed the chain at £344 million, with profitability from Argos negatively impacting the main retail business.
In 2023, Sainsbury’s has already closed two Argos distribution centers and its head office in Milton Keynes as part of ongoing cost-cutting measures. The restructuring has involved moving many Argos operations into Sainsbury’s stores while reducing the number of standalone locations.
Source: https://www.theguardian.com/business/2025/sep/14/sainsburys-talks-sell-argos-chinese-retailer-jdcom