Sainsbury's is understood to be in discussions over a potential sale of iconic British retailer Argos, which it purchased more than a decade ago for £1.56million.
Report suggest there is talks to sell the business to Chinese e-commerce giant JD.com in an effort to "accelerate Argos' transformation" in the retail landscape.
In a statement, the supermarket giant said: "JD.com would bring world-class retail, technology and logistics expertise and invest to drive Argos’ growth and further transform the customer experience."
However, Sainsbury's noted that "no agreement has been reached and there is no certainty at this stage that any transaction will proceed".
Sainsbury's is understood to be in talks to sell Argos
|PA
This latest business decision from the high street staple comes amid a challenging time for British retailers amid concerns over rising tax bills and the cost of living.
Research from the British Retail Consortium (BRC) found that 400 of the country's biggest shops are t risk of closure if the Government pulls businesses into a proposed higher tax band.
As it stands, the retail trade group estimates that there are around 4,000 large-format retail stores in the UK with a rateable value of over £500,000.
The group's analysis determined that, if these shops are included in the Government’s new business rates surtax on premises with a rateable value over £500,000, around 400 will be at risk of closure.
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The high street has been hit with store closures in recent months. | PAHelen Dickinson, the BRC's chief executive, broke down the plight inflicting thousands of British business owners at the moments.
She explained: "Britain’s largest shops are magnets, pulling people into high streets, shopping centres and retail parks, supporting thousands of surrounding cafes, restaurants and smaller and independent shops.
"After years of rising costs, far too many stores have disappeared – leaving behind empty shells that once thrived at the heart of our communities. Four hundred more large stores could disappear if the Government forces them into its new higher tax band.
"This would mean up to 100,000 jobs lost, emptier high streets, and less revenue for the Exchequer. The Chancellor can back families, jobs and high streets this Autumn, by excluding large shops from the new higher business rates tax band.
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"This would not cost the Exchequer a penny, yet would help secure the future of 400 retail stores, and the communities they support, right across the country. But failure to act risks shuttering hundreds more stores, costing jobs, communities and the economy far more in the long run."
As it stands, Argos is the UK’s second-largest general merchandise retailer in Britain.
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Argos could be sold off
| GETTY IMAGESIt is also the third most visited retail website in the UK with over 1,100 collection points to pick up their items.
Currently, Sainsbury's is the second largest supermarket group in the country, only behind Tesco.
The group has pledged to commit to delivering "solid progress" in business growth for Argos.
As of today (September 13), Sainsbury's market value is hovering around £6.99billion.