Overview

• Sainsbury’s confirmed it has terminated discussions with JD.com, saying the Chinese retailer would only engage on materially revised terms it could not accept.
• Argos remains within the group as Sainsbury’s pursues its transformation plan and Next Level strategy, with guidance reaffirmed for around £1bn retail underlying operating profit and more than £500m retail free cash flow in FY 2025/26.
• Sainsbury’s shares rose about 6% on Monday after the collapse of the talks, as investors weighed prospects for Argos and the core food-first strategy.
• The now-ended negotiations followed months of advanced discussions reported by the press, including JD.com working with EY and Sainsbury’s separating commercial teams, with UK ministers briefed during JD.com’s wider UK investment outreach.
• Argos was valued at £344m in Sainsbury’s latest accounts versus the £1.1bn–£1.4bn paid in 2016, and the chain now has nearly 200 standalone stores and more than 1,100 collection points.