Sainsbury’s terminates discussions with Chinese retail giant over Argos sale

Sunday 14 September 2025 4:48 pm

Sainsbury’s has terminated discussions with Chinese language retail big JD.com over the sale of Argos solely a day after rumors of the deal got here to gentle.

The UK grocer mentioned that the proposed take care of JD.com was “not in the very best pursuits of Sainsbury’s” and has subsequently ended discussions, it mentioned on September 14.

“JD.com has communicated that it might now solely be ready to interact on a materially revised set of phrases and commitments which aren’t in the very best pursuits of Sainsbury’s shareholders, colleagues and broader stakeholders,” the grocery store defined.

On September 13, retailer JD.com mentioned a transaction with Nasdaq listed JD.com might speed up Argos’ transformation, by offering elevated expertise and logistics expertise.

JD.com is China’s largest retailer with 600 million annual lively clients.

Sainsbury’s purchased Argos for greater than £1bn lower than a decade in the past, and it’s now the UK’s second-largest common merchandise retailer, behind Tesco, with the third most-visited retail web site within the UK.

It retains nearly 200 stand-alone shops – with kiosks the place clients used to peruse its well-known catalogue – and greater than 1,100 assortment factors, principally in Sainsbury’s shops.

Argos has traded “in keeping with expectations” over the summer time, helped by good climate, with gross sales within the first half of the 12 months and profitability stronger towards a interval final 12 months when second-quarter gross sales had been boosted by clearance exercise, Sainsbury’s mentioned.

It reported income of $158.8bn (£128.5bn) within the 2024 monetary 12 months, and income of $91.8bn within the first half of 2025.

The retailer was buying and selling at $33.67 upon markets closing on Friday.

Sainsbury’s mentioned it “continues to have sturdy momentum and is targeted on delivering its Subsequent Degree technique and commitments”.

“We proceed to count on to ship retail underlying working revenue of round £1bn and Retail free money move of greater than £500m within the monetary 12 months 2025/26,” the corporate added.