Sainsbury's Offloads Argos to Focus on Food
Sainsbury's sold its "Argos" unit for less than one-tenth of the value of its acquisition in 2016, as part of its strategy to focus on the food sector, receiving £120 million in cash proceeds from the deal. This comes after previous measures included selling credit cards and reducing the number of stores, aimed at tackling the challenges posed by e-commerce platforms like Amazon and Timo to the UK retail sector. The transaction results in an accounting loss of £350 million, with a neutral impact on core earnings. All 14,000 employees of the unit have been transferred to the new company. This move marks the end of the UK grocery chains' non-food expansion phase and the company's renewed focus on food retailing.
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