Sainsbury's separates from Argos credit card portfolio in favor of NewDay Group

The British retail giant J Sainsbury has reached an agreement to sell its Argos credit card portfolio to the NewDay Group. The transaction value amounts to 720 million pounds (equivalent to 935 million US dollars). With this step, Sainsbury's is further withdrawing from the financial services sector and placing greater focus on its core retail business. The sale price reflects the expected credit card balances within the portfolio and the associated provisions that Sainsbury's forecasts for the end of the first quarter of 2025. The transaction is expected to be completed at that time. This move is part of a larger strategy by the British retailer to redefine its business priorities and focus on its main customer base.