Sainsbury’s to Wind Down Banking Division as Focus Shifts to Core Food Business

Sainsbury’s, the renowned supermarket chain, has announced plans to wind down its banking division as it aims to concentrate on its core food business. The company stated that it intends to undertake a phased withdrawal from its core banking operations, but assured its 1.9 million customers that they would not experience immediate changes.

Sainsbury’s Bank, currently providing services such as loans, credit cards, and savings accounts, joins rival Tesco in exploring options to dispose of its banking arm. Notable banks like HSBC, Barclays, and Lloyds have emerged as potential bidders for Tesco Bank.

Sainsbury’s did not provide a specific timeline for its exit from the banking sector but emphasized that business operations would continue as usual for the time being. The retailer mentioned the possibility of outsourcing its products to other providers, as it currently does with insurance policies offered through third parties. Additionally, its subsidiary Argos offers credit cards and loans to approximately 2.1 million customers.

Simon Roberts, the CEO of Sainsbury’s, remarked, “We have been clear since we launched our food first strategy in 2020 that we would concentrate our efforts on our core retail businesses, and today’s announcement reflects that strategic focus.” He further assured customers that any changes to their products and services would be communicated well in advance.

Nevertheless, Sainsbury’s Bank and Argos financial services will not undergo immediate alterations, and both existing and future customers can expect continuity in their interactions. Sainsbury’s Bank originated as a joint venture with the Bank of Scotland back in 1997, before Sainsbury’s acquired full ownership by purchasing the remaining 50% stake in 2014 for a sum of £248 million.