Sainsbury's sells Argos

What happened: On Friday, Sainsbury's agreed to sell Argos, its general merchandise retail chain, for £120m to Swift Partners, a company formed by retail veterans including former Co-operative Group boss Richard Pennycook. This sale comes a decade after Sainsbury's bought Argos for over £1bn, and less than a year after talks to sell Argos to JD.com collapsed.

Market impact: The sale allows Sainsbury's to focus on its core food business, potentially boosting its profitability. However, it represents a significant loss for the supermarket, selling Argos for £161m less than it paid a decade ago. This could signal a shift in strategy for Sainsbury's, with investors watching for further changes in its portfolio.

What to watch next: Sainsbury's will report its full-year results on May 12, 2021. Investors will scrutinize these results for any further strategic shifts and their impact on the company's financials. Additionally, the integration of Argos into Swift Partners will be closely watched, with the first signs of its performance expected in the coming quarters.