Asda has announced a major partnership with retail technology giant Ocado to significantly enhance its online grocery service for customers.
The collaboration will see Ocado’s Smart Platform technology rolled out across Asda’s website, app, in-store picking, and home delivery operations.
The initiative is set to begin in 2027, starting with an upgrade to the UK’s third-largest supermarket’s website and online shopping experience.
This strategic move forms a crucial part of a wider turnaround plan at Asda, led by executive chairman Allan Leighton.
Mr Leighton said: “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.”
The boss, who returned to the retailer in late 2024 after previously leading the firm more than 20 years earlier, has sought to improve product availability and value for shoppers through price investment.
In March, he said the group still had “plenty to do” to turn around its fortunes.
Asda, which has around 1,100 stores, will first work on upgrades for its website and online shopping, followed by solutions for picking products in-store and “last-mile delivery” improvements.
The retailer said this is designed to help shops manage orders more efficiently, improve deliveries and make more slots available for customers.
Ocado’s fulfilment technology is used in more than 1,000 grocery stores globally.
Tim Steiner, chief executive of Ocado Group, said: “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.”
A spokesperson for Asda added: “Under the terms of the agreement, Asda will retain full control of its customer offer, pricing and online operations. Scheduled home delivery and click and collect orders will continue to be fulfilled from Asda stores and Asda’s existing fulfilment hubs.
“Orders placed through rapid delivery partners such as Deliveroo, Just Eat and Uber Eats, will be picked by Asda using Ocado’s technology and delivered by the third-party provider”.
