Asda has announced a partnership with retail technology giant Ocado to enhance its online grocery service, marking a significant step in the supermarket chain's turnaround strategy.
Details of the Partnership
The UK's third-largest supermarket chain will implement Ocado's Smart Platform technology across its website, app, in-store picking operations, and home delivery service. The collaboration is set to begin in 2027 with an upgrade to Asda's website and overall online shopping experience.
This move comes as part of a major revitalization plan led by executive chairman Allan Leighton, who returned to the retailer in late 2024 after previously heading the company over two decades ago. Leighton has focused on improving product availability and value through price investments.
Executive Comments
Allan Leighton stated: "We know that continued success in this highly competitive market is dependent on providing a positive experience for customers every time they shop. Partnering with Ocado will strengthen our online offer and provide a consistent and high-quality experience for millions of shoppers, from order through to delivery, while supporting our formula for growth."
In March, Leighton acknowledged that the group still had "plenty to do" to turn around its fortunes.
Implementation and Benefits
Asda, which operates around 1,100 stores, will first focus on website and online shopping upgrades, followed by solutions for in-store product picking and improvements to "last-mile delivery." The retailer aims to help shops manage orders more efficiently, enhance deliveries, and increase the availability of delivery slots for customers.
Ocado's fulfilment technology is already used in over 1,000 grocery stores globally.
Ocado's Perspective
Tim Steiner, chief executive of Ocado Group, commented: "We're delighted that Asda has chosen Ocado to support the next phase of their online growth. The UK remains one of the world's most competitive and fast-evolving online grocery markets, where technology, scale and continuous innovation are increasingly important for retailers looking to maintain leadership positions. Through this partnership, Asda will be able to deploy a technology platform already processing more than 70 million orders annually worldwide, supporting market-leading customer propositions across 11 countries."
