Sainsbury’s has announced the sale of its Argos credit card portfolio to NewDay Group for £720 million.
- This move aligns with Sainsbury’s ongoing strategy to reduce its banking services.
- The portfolio accounts for 20% of Argos sales, serving around two million customers.
- A new partnership with NewDay will introduce a modern credit system for Argos shoppers.
- Earlier this year, Sainsbury’s also began divesting parts of its banking arm to Natwest Group.
Sainsbury’s has reached a significant agreement to sell its Argos credit card portfolio to NewDay Group in a deal valued at £720 million. This decision forms part of Sainsbury’s broader strategy to scale back its involvement in financial services, following previous announcements of reducing its banking operations.
The Argos credit card portfolio currently facilitates roughly 20% of sales at Argos, a major retail subsidiary of Sainsbury’s. It is utilised by approximately two million customers, offering them a means to manage their purchase costs efficiently.
In addition to the sale, Sainsbury’s is set to collaborate with NewDay on developing a new digital credit product under the Argos brand. This initiative aims to present customers with a wider range of modern, flexible options for purchasing and payment.
Sainsbury’s CEO, Simon Roberts, emphasized the importance of this transition, highlighting it as a key milestone in achieving what he describes as ‘Next Level Sainsbury’s.’ Roberts noted the choice of NewDay as a partner aligns with Sainsbury’s commitment to providing value and choice, prioritizing customer convenience.
Earlier in the year, Sainsbury’s indicated its intent to divest most of its banking operations, selecting Natwest Group for this transaction due in the first half of the following year.
This strategic divestment marks a pivotal shift in Sainsbury’s financial services approach.
