Asda turns to Ocado in bid to fix its online grocery problem

Asda will partner with Ocado Group to rescue its lagging online grocery operation through a long-term technology and fulfilment agreement. Ocado’s Smart Platform will be deployed across Asda’s consumer website and app, in-store order assembly, and planning systems that route delivery vans to about 1,100 UK stores. The rollout is scheduled to begin in 2027 with a refreshed online shopping experience, followed by improvements to picking and delivery. The move is positioned as a central element of executive chairman Allan Leighton’s turnaround plan after he returned to Asda in late 2024. The partnership aims to improve customer experience and support growth amid market-share pressure, with Asda below 14% overall and trailing in online grocery.

"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."

""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.""

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