Sainsbury’s has sold its Argos credit card arm for £720m, as part of its continued strategy of focusing on its core retail offering.
The financial services arm has been sold to credit provider NewDay Group, with the transaction likely to complete in March 2025.
Argos, which is owned by the supermarket giant, has about 20% of its sales go through its credit cards, which are held by some 2 million customers. The cards offer credit and buy now, pay later options to help customers manage their spending.
Both Sainsbury’s and NewDay Group said Argos credit card customers would not need to take any action as a result of the sale.
The deal comes months after Sainsbury’s agreed to the sale of the majority of its financial services arm to NatWest Group – including personal loans, credit card balances and customer loans.
The supermarket also sold its more than 1,300 ATM machines to operator NoteMachine, as it continues to implement its ‘food first’ strategy under chief executive Simon Roberts.
Roberts said the sale was a “key milestone” for the group, adding: “NewDay is a complementary fit for us as we strive to give customers at Argos the best value and choice and make it as easy as possible for them to buy the products they need.”
No comments yet