JD.com’s attempt to enter the UK market fails

By: Trademagazin Date: 2025. 09. 12. 10:03

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Negotiations between Chinese e-commerce giant JD.com and Sainsbury’s over a potential acquisition of Argos have broken down. The second-largest British grocery chain announced in a statement on Sunday that the terms and commitments offered by the Chinese would not have served the interests of shareholders, Bloomberg reported.

This is the second failed British attempt for JD.com: they previously attempted to acquire electronics retailer Currys, but ultimately abandoned the purchase in 2024. Now it seems that Argos has also slipped out of their hands, despite Matthew Nobbs, the company’s new commercial director, planning to “break into the UK” in the spirit of the Chinese success story.

However, JD.com’s intention to expand into Europe is unwavering. The company already operates a large, automated warehouse in Poland near the German border and made a €2.2 billion offer to acquire German electronics chain Ceconomy in the summer. So they are still seriously considering entering the European market, even if they have not yet succeeded in conquering the British market.

The British Telegraph wrote on Saturday that the involvement of JD.com could accelerate the transformation of Argos “for the benefit of customers, colleagues and partners”. Sainsbury’s decision was nevertheless more in favor of waiting. The company bought Argos in 2016 with high hopes, but since then it has become more of a burden on the parent company. Although they achieved a 4.4 percent increase in turnover in the first quarter of this year, the chain continues to pose serious challenges for Sainsbury’s.