J Sainsbury, the UK’s second-largest supermarket, is in discussions to sell its Argos unit to JD.com, a major ecommerce firm from China.

Sainsbury acquired Argos in 2016 and has seen mixed results from the business, with Q1 sales up 4.4% due to favorable weather.

The company said talks with JD.com include commitments related to Argos’ customers, staff, and partners, but did not share financial terms.

No agreement has been reached, and Sainsbury said there is no certainty the deal will proceed.

UK retailers like Sainsbury have faced higher costs from recent tax and wage increases, leading Sainsbury to announce 3,000 job cuts and cafe closures this year.

Sainsbury’s shares rose 6% over the past year, underperforming the FTSE 100 index’s 12% gain.

🔗 Source: Bloomberg