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On September 15, a prominent UK supermarket chain announced the termination of talks with a major Chinese e-commerce firm regarding the potential sale of its general retail division. The discussions, which had been publicly acknowledged the previous day, have now been concluded.
The Chinese company had proposed significantly revised terms for the deal, which the UK retailer deemed to be “not in the best interests of its shareholders, employees, or broader stakeholders.” The UK company stated this decision yesterday after ending negotiations.
Earlier, the UK grocery chain had indicated that a deal with the Chinese e-commerce giant could quicken the transformation of Argos, describing the international firm as bringing “world-class retail, technology, and logistics expertise,” and expressing confidence that their partnership would boost Argos’ growth and improve customer experience.
This Chinese e-commerce company has been making several recent efforts to expand its presence in the UK. In March of last year, it withdrew from negotiations to acquire an electrical goods retailer, and in April, it launched a supermarket pilot under the brand Joybuy. The company has also been expanding into other European countries such as France, Poland, and Germany.
Argos stands as the second-largest general merchandise retailer in the UK, with over 1,100 collection points nationwide and the third most-visited retail website in the country.
The UK retailer reaffirmed its commitment to strengthen Argos’ standing in the UK market, highlighting progress in its “More Argos, More Often” transformation plan. This strategy aims to broaden product offerings and enhance digital capabilities.
Additionally, the company noted that Argos’ performance over the summer met expectations, assisted partly by favorable weather conditions. Sales and profitability in the first half of the year exceeded figures from the same period last year.
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