Sainsbury’s has terminated discussions with Chinese retail giant JD.com over the sale of Argos only a day after rumors of the deal came to light.
The UK grocer said that the proposed deal with JD.com was “not in the best interests of Sainsbury’s” and has subsequently ended discussions, it said on September 14.
“JD.com has communicated that it would now only be prepared to engage on a materially revised set of terms and commitments which are not in the best interests of Sainsbury’s shareholders, colleagues and broader stakeholders,” the grocer explained.
On September 13, retailer JD.com said a transaction with Nasdaq listed JD.com could accelerate Argos’ transformation, by providing increased technology and logistics experience.
JD.com is China’s largest retailer with 600 million annual active customers.
Sainsbury’s bought Argos for more than £1bn less than a decade ago, and it is now the UK’s second-largest general merchandise retailer, behind Tesco, with the third most-visited retail website in the UK.
It retains almost 200 stand-alone stores – with kiosks where customers used to peruse its famous catalogue – and more than 1,100 collection points, mostly in Sainsbury’s stores.
Argos has traded “in line with expectations” over the summer, helped by good weather, with sales in the first half of the year and profitability stronger against a period last year when second-quarter sales were boosted by clearance activity, Sainsbury’s said.
It reported revenue of $158.8bn (£128.5bn) in the 2024 financial year, and revenue of $91.8bn in the first half of 2025.
The retailer was trading at $33.67 upon markets closing on Friday.
Sainsbury’s said it “continues to have strong momentum and is focused on delivering its Next Level strategy and commitments”.
“We continue to expect to deliver retail underlying operating profit of around £1bn and Retail free cash flow of more than £500m in the financial year 2025/26,” the company added.
