Sainsburys in Advanced Talks to Sell Argos to Chinese Retail Giant JDcom

Sainsbury’s is reportedly in advanced discussions to sell its Argos retail chain to JD.com, one of China’s largest e-commerce firms. The FTSE 100 grocer acquired Argos for £1.4 billion in 2016 with the ambition of expanding beyond its traditional supermarket business and competing more broadly with online retailers. However, Argos has faced growing scrutiny from analysts, with some describing it as a significant burden on Sainsbury’s operations as the group pivots to a “food first” strategy under chief executive Simon Roberts.

Reports indicate that the negotiations are progressing swiftly, coming on the heels of high-level trade talks between British and Chinese officials in Beijing. JD.com, which employs around 900,000 people and is valued at £38 billion on the Nasdaq, has been quietly building a presence in the UK through a trial of its joybuy.com marketplace offering a wide array of products.

The future of more than 200 standalone Argos outlets across British high streets remains uncertain as terms are still being discussed. JD.com would bring to the table global expertise in retail, technology, and logistics, with potential plans to accelerate Argos’s transformation should any deal go ahead. Sainsbury’s has said that JD.com would commit to supporting Argos’s staff, customers, and partners as part of the transaction.

Sainsbury’s refrained from disclosing the number of jobs at Argos specifically, but the supermarket group’s total headcount stands at 141,000. Sources note that no agreement has been finalised and the deal is not yet assured to proceed. The strategic rationale for Sainsbury’s initial acquisition of Argos has been debated by investment bankers for several years, especially after the physical Argos catalogue was phased out in 2020 in favour of digital options.

News of the talks with JD.com underscores the ongoing transformation in UK retail, where supermarkets strive to remain competitive against overseas e-commerce rivals. Any eventual sale could mark the end of an era for Argos, famously known for its catalogues and iconic in-store blue pens, and could raise JD.com’s profile substantially within the British market.