Sainsbury's is in discussions with Chinese e-commerce giant JD.com over the potential sale of Argos. The supermarket giant confirmed talks are ongoing regarding the catalogue retailer it acquired for £1.4 billion in 2016.
The British retailer stressed that no agreement has been reached and there is no certainty any transaction will proceed. Sainsbury's said it remains "committed to delivering the strongest and most successful future for Argos customers and colleagues".
Major retail players involved
JD.com serves more than 600 million customers worldwide across over 200 countries. According to City A.M, the company posted revenue of $158.8 billion in its 2024 financial year, demonstrating its massive global scale.
Argos operates over 1,100 collection points across the UK and ranks as the third-most visited retail website in the country. The retailer currently holds the position as Britain's second-largest general merchandise retailer.
Transformation since acquisition
Since Sainsbury's takeover in 2016, dozens of standalone Argos stores have closed in favour of outlets within Sainsbury's superstores. The integration was part of Sainsbury's strategy to compete with online retail giant Amazon, though the business has not delivered the profitability initially hoped for.
Sainsbury's said any potential deal would "accelerate Argos' transformation" and "further transform the customer experience". The company's 'More Argos, more often' transformation strategy continues to deliver progress.
International retail connections
Argos already operates franchised outlets in China, while JD.com has been expanding its UK footprint. The Chinese company acquired a 23,000 square metre warehouse in Rugby this summer and currently operates 11 sites across Britain.
JD.com was founded by entrepreneur Liu Qiangdong in 1998, initially as a store selling magneto optical drives before moving online in 2004. Liu is now one of China's wealthiest individuals with an estimated fortune of £3.7 billion.
Sources used: "Metro", "City A.M", "independent" Note: This article has been edited with the help of Artificial Intelligence.
