Could the Argos catalogue return? Retail veterans hope to revive struggling brand after buying from Sainsbury's

The new owners of Argos could bring its beloved catalogue back after Sainsbury's announced it is selling the retailer for £120million.Supermarket Sainsbury’s has said it will sell the firm – whose products range from furniture to technology – to a team of retail veterans, including former executives of Co-op and Morrisons.Sales at Argos, which sells goods online that can be picked up at collection points in Sainsbury’s shops as well as some stand-alone shops, have tumbled in recent years due to competition from giants including Amazon and Shein.The deal is expected to complete in February next year, with a full separation of the Argos business by 2029.It is not clear how many jobs will be transferred in the process, even though Sainsbury's boss Simon Roberts insisted it is ‘business as usual’ for now.A sale to the newly rated investment firm Swift Partners – made up of former Co-op boss Richard, former Morrisons’ chief operating officer, Trevor Strain, and co-founder of investment firm True Capital, Matt Truman – brings an end to a decade of ownership by Sainsbury’s. While news of the sale has created uncertainty over the future of jobs, bosses insisted it is 'business as usual' for the moment at Sainsbury's and Argos.But the £120 million sum represents just a sliver of the £1.4billion Sainsbury’s paid for the company in 2016.Pennycook said his team may consider opening some new standalone stores in parts of the country where Argos does not have an existing presence or where they cannot open within a Sainsbury’s.And he has not ruled out bringing back the nostalgic catalogue of Argos products, when asked by reporters on Friday.Pennycook said: 'We do see the heritage of Argos is a very important part of its brand. We want to build on that strong heritage. At same time, we all know the brand has to be relevant for today and customers' needs today.'He said the return of the catalogue was the ‘first thing’ his own daughter asked him about the deal and that he has memories of ticking the retailer’s ‘green shield stamps’ into books as a child.Argos stopped printing its bi-annual catalogue in 2020 after producing more than 1billion copies since 1973. At one point, it was the most widely printed publication in Europe, and it was only the Bible that was kept in more UK homes.But bosses said online shopping gives shoppers ‘greater convenience’ now.Retail expert Jonathan De Mello said: ‘The enduring nostalgia for the physical Argos catalogue reflects the shift we have seen over the past few decades from accidental discovery to highly transactional shopping.‘While online portals are incredibly efficient for intentional purchases, they strip away the casual, cross-category browsing that print directories naturally invited.’Chris Beauchamp, analyst at investing platform IG, said that ‘nostalgia alone doesn't save a company,’ and the business will need ‘a distinctive offering but one that competes on price.’Sainsbury’s has long complained that UK firms like Argos are at a disadvantage compared to international online retailers due to a customs duty loophole.The Government has said it will move to scrap a rule that allows Shein and Temu to post parcels worth up to £135 to the UK without paying duty before October 2028.But retailers say this is not fast enough as the policy is killing the UK High Street as it means foreign companies can undercut British firms, which have been hit with higher costs in recent years.Roberts denied that this was the reason for selling Argos.Pennycook said the situation was ‘not right’ and welcomed the Government’s actions to close the loophole, which he said was causing the Government to lose out on tax revenue and putting UK firms ‘at a competitive disadvantage.’ The Argos catalogue stopped being printed in 2020 as more people turned to online shoppingIn its early days, Brits could redeem Argos goods with green shield stamps – which customers could earn by shopping in supermarkets.Sainsbury’s did not disclose how many staff will be transferring over to Swift Partners under the deal – sparking anxiety over staff’s future.Bally Auluk, national officer at union Usdaw, welcomed the new owners’ commitment to shops. But he said: ‘We recognise this announcement will create uncertainty for those affected.’The deal includes 201 Argos standalone stores, as well as its 466 shops within Sainsbury’s shops and a further 466 collection points. Swift is also buying the Argos logistics network, pet insurance and product warranty cover.Sainsbury’s boss Simon Roberts said the sale will ‘create the strongest possible future for Argos.’Pennycook also said: 'It is a new chapter for Argos but it is not the end of the relationship with Argos and Sainsburys.'He insisted that 'important partnerships', including with the loyalty-point scheme Nectar and the homewares brand Habitat, 'will continue'.And Pennycook said the ability to pick products up from shops within hours of ordering them online was 'a unique part of the model' and a 'great strength'.It is not the first takeover attempt for Argos. 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