The superstore located on Ferry Road has been on the Retail Park for decades, and now almost 60 jobs are at risk after the stand-alone store is set to close in July.
Closure of the store comes after Argos announced last month that it will shut all 34 of its stores in the Republic of Ireland.
Argos was acquired by Sainsbury’s in a £1.4 billion takeover in 2016.
The supermarket is set to close 420 standalone Argos stores by March next year, with plans to open 150 Argos outlets in Sainsbury’s supermarkets.
The store in Cardiff Bay is the only stand-alone store left in Cardiff, as others stores in the area already inside a Sainsbury’s superstore.
The nearest stand-alone store for residents in Penarth is located in Barry at the Waterfront Retail Park.
An Argos spokesperson said: “We are talking to our colleagues at Cardiff Bay Argos following the difficult decision to close the store.
“We understand this will be an unsettling time for those affected and we are supporting them in every way we can, including exploring opportunities to redeploy within Argos and Sainsbury’s.
“We regularly review our property estate and the decision to close a store is never taken lightly and is based on a range of factors. The store is expected to close in July 2023.”