Sainsbury's ends talks to sell Argos after JD.com seeks revised terms
Supermarket group says Chinese retail giant's new terms were 'not in the best interests' of shareholders, colleagues and stakeholders
Sainsbury's has terminated discussions to sell Argos to Chinese ecommerce giant JD.com after the potential buyer sought materially revised terms that the supermarket group said would not be in the best interests of shareholders, colleagues and broader stakeholders.
The supermarket confirmed the collapse of talks on Sunday, saying JD.com had communicated that it would only be prepared to continue on a materially revised set of terms and commitments. "Accordingly, Sainsbury's confirms that it has now terminated discussions with JD.com," the company said.
Sainsbury's acquired Argos in 2016 for £1.4 billion and subsequently integrated many standalone Argos outlets into its supermarkets to offer customers in‑store collection alongside weekly shopping. Argos is described by Sainsbury's as the UK's second-largest general merchandise retailer, operating the third most visited retail website in the country and more than 1,100 collection points.
JD.com, one of the world's largest online retailers, operates predominantly in Asia and reported about 600 million annual shoppers, roughly £120 billion in turnover and about 700,000 staff. The company has been progressing global expansion plans, although it still derives most of its revenue from Chinese markets. JD.com's founder and chairman, Richard Qiangdong Liu, is among China's wealthiest individuals.
Sainsbury's said the decision to end talks reflected a duty to protect shareholder value and the interests of employees and other stakeholders. The group reiterated its commitment to Argos and said its "More Argos, more often" transformation strategy is making progress, with targeted actions to expand range, enhance digital capabilities and grow customer frequency and spend while delivering operating-model efficiencies.
The group added that Argos traded in line with expectations over the summer and that first-half sales and profitability were stronger than the same period a year earlier, when second-quarter sales were aided by clearance activity. Falling sales at Argos had weighed on Sainsbury's results in the previous year, but the company said performance had improved in 2025.
Sainsbury's also reaffirmed its wider financial guidance, saying it continued to expect to deliver retail underlying operating profit of around £1 billion and retail free cash flow of more than £500 million in the 2025-26 financial year. The announcement was followed by a rise in Sainsbury's shares, which were up about 3.1% at 316.8 pence in early trading on Monday.
The potential sale was first confirmed by Sainsbury's over the weekend after media reports of talks with JD.com. Negotiations ended after the Chinese retailer sought changes Sainsbury's judged unacceptable; the company did not disclose the specific terms JD.com requested.
With talks concluded, Sainsbury's said it remains focused on executing its Next Level strategy and delivering long-term returns. The company provided no timetable for reconsidering an alternative sale process or for pursuing other strategic options for Argos.