Argos plunges to £223m loss as 2,000 jobs cut and sales slump

Argos has fallen to a £223.2 million pre-tax loss in its latest financial year after cutting more than 2,000 jobs and suffering a drop in sales amid a tough general merchandise market.

The retailer — owned by Sainsbury’s since 2016 — saw its performance swing sharply from the £37.3 million profit it posted the previous year. Newly filed accounts for the 12 months to 1 March 2025 show revenue slipped from £4.22 billion to £4.13 billion, reflecting weakened demand across key categories.

Headcount fell from 12,000 to 9,800, as Argos pushed ahead with restructuring efforts designed to simplify its operating model and reduce costs.

The company said revenue had been hit by a “subdued and highly competitive general merchandise market”, noting that online traffic dropped significantly in the first half of the year. A “cooler and wetter summer” also dampened seasonal demand, leading to sales falling short of expectations.

Despite the weak start, Argos reported improved trading during the second half as online visits recovered. The retailer returned to year-on-year growth in the fourth quarter, supported by heavy promotional activity.

Argos posted an underlying pre-tax loss of £73 million, driven by thinner margins as promotional sales rose sharply in what it described as “tough trading conditions”.

In a statement signed off by the board, Argos said it was focused on driving more frequent shopping and encouraging larger baskets:
“Following a slow start to the financial year and within a general merchandise market that remains highly competitive, our focus is on encouraging customers to shop with us more often and with bigger baskets. We are driving change in our digital and commercial proposition and have made good progress strengthening the Argos offer.”

The update comes shortly after Sainsbury’s confirmed it had entered talks over a potential sale of Argos to Chinese e-commerce giant JD.com — only to abruptly abandon the discussions a day later. JD.com, China’s largest retailer with more than 600 million active customers, had been exploring expansion into European omnichannel retail, but no agreement was reached.

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Argos plunges to £223m loss as 2,000 jobs cut and sales slump