Credit, collections & insolvency news
Sainsbury’s has announced that it has sold its Argos Financial Services (Home Retail Group Card Service) cards portfolio to NewDay Group for £720 million, aligning with its strategy to concentrate on core retail operations.
The supermarket has announced that it has also partnered with NewDay to launch a new Argos-branded digital credit offer. This move follows Sainsbury’s phased exit from banking, which began in January. The company anticipates that income from insurance, travel money, and ATMs, combined with the NewDay partnership, will generate at least £40m annually by March 2028. Additionally, Sainsbury’s expects to reclaim excess capital of at least £250m from Sainsbury’s Bank for shareholder returns. Shares fell 0.8% in early trading, extending 2024 losses to over 13%.
The Portfolio comprises approximately two million customers and £800 million of receivables. Customers currently holding an Argos-branded credit card or store card do not need to take any action as a result of this announcement. There will be no immediate changes to Argos Financial Services customers’ existing terms and conditions.
Simon Roberts, Sainsbury’s CEO said “As we make progress with the plan for Next Level Sainsbury’s, this is a key milestone in building our future model for Financial Services. It’s really important we work with partners who share our values and customer focus. 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.”
John Hourican, NewDay’s CEO said “We look forward to welcoming AFS’ two million customers to NewDay, where they will benefit from our increased digital offering and award-winning customer service, and we are fully focused on ensuring a smooth transition for these customers. This is a great opportunity to forge a partnership with one of the UK’s leading retailers as well as accelerate the growth of our Credit business, in line with our strategic objectives.”
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