Asda has turned to Ocado Group in an attempt to rescue an online grocery operation that has lagged the competition for the best part of a decade, signing a long-term deal that will see the Hatfield-based technology firm rebuild the supermarket’s digital shop window, in-store picking and last-mile delivery network.
Under the agreement, announced this week, Asda will deploy Ocado’s Smart Platform, the same end-to-end fulfilment stack used by more than 1,000 grocery stores in 11 countries, across its consumer-facing website and app, its in-store order assembly, and the planning systems that route vans to roughly 1,100 UK stores. The roll-out is scheduled to begin in 2027 with a refreshed online shopping experience, before progressing to picking and delivery improvements.
The tie-up is the boldest move yet by executive chairman Allan Leighton, who returned to the Leeds-based grocer in late 2024 after a quarter of a century away, and is being positioned as a central plank of his turnaround plan. Leighton, who built his reputation in British retail during Asda’s Walmart-era heyday, has spent the past 18 months pumping money into price, availability and store standards while attempting to halt years of market-share slippage.
“We know that continued success in this highly competitive market is dependent on providing a positive experience for customers every time they shop,” Leighton said. “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 decision reflects a hard commercial reality. According to Kantar Worldpanel, Asda’s share of the British grocery market has drifted below 14 per cent, leaving it firmly third behind Tesco and Sainsbury’s and within touching distance of Aldi. Online, where Tesco and Sainsbury’s have long dominated and Ocado Retail has set the benchmark for service, the gap has been even more pronounced. Industry analysts have repeatedly cited a clunky digital experience, limited delivery slots and inconsistent in-store picking as drags on Asda’s growth.
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