In a strategic move, Sainsbury’s has sold the Argos Financial Services (AFS) credit card portfolio to NewDay Group. With this acquisition, NewDay gains around two million Argos credit customers who use store credit for purchases, which account for about 20% of Argos sales.
The deal is valued at roughly £720 million, aligned with the loan balances expected by Q1 2025. But this isn’t just a sale—it’s also the start of a new partnership. Sainsbury’s and NewDay plan to create a digital credit platform under the Argos brand, promising customers flexible and modern financing options to manage their purchases.
This announcement follows Sainsbury’s previous steps in refocusing on core retail operations, including the sale of Sainsbury’s Bank assets to NatWest and the ATM business to NoteMachine. Together, these moves are expected to provide Sainsbury’s with a sustainable income stream of over £40 million annually by 2028.
For customers, there’s no immediate action required. Terms stay the same, and NewDay will work to ensure a smooth transition for Argos cardholders. Sainsbury’s CEO Simon Roberts emphasized that NewDay is a great fit, sharing Sainsbury’s values and commitment to customer value. NewDay’s CEO John Hourican also highlighted that the partnership aligns with their digital expansion goals and commitment to top-notch customer service.
With this new digital credit venture, Sainsbury’s and NewDay aim to provide Argos customers with greater choice and flexibility, cementing Sainsbury’s focus on evolving its retail and financial services.
