Asda has reached a deal with Ocado Group Plc to replace and upgrade its existing e-commerce platform [1].
The partnership comes as Asda attempts to reverse a decline in digital sales and regain its footing in the competitive UK grocery market. By outsourcing its online operations to Ocado's technology, Asda aims to modernize the shopping experience for its customers.
Asda said that like-for-like sales dipped by 0.8% [3] over the three months ending March 31, compared with the previous year. This downturn has pressured the supermarket chain to seek more efficient technology to lift online sales and recover market share [4].
The agreement, announced Friday, May 29, 2026 [1], allows Ocado to implement its automated technology across Asda's online grocery business in the U.S. and United Kingdom [1]. The move represents a significant shift in how Asda manages its digital storefront, effectively moving from an internal system to an external provider.
For Ocado Group Plc, the deal provides a critical boost to its business model. The British grocery-technology firm is seeking new growth after a turbulent year marked by previous setbacks [1]. By integrating its sales systems into one of the UK's largest supermarket chains, Ocado can demonstrate the scalability of its automated infrastructure.
While the specifics of the financial terms were not disclosed, the arrangement focuses on the total replacement of Asda's existing e-commerce infrastructure [1]. The two companies said the upgrade will streamline the process of online ordering, and fulfillment across the country [2].
“Asda has reached a deal with Ocado Group Plc to replace and upgrade its existing e-commerce platform”
This partnership signals a strategic pivot for Asda, moving away from proprietary digital infrastructure in favor of a specialized technology partner to combat stagnating growth. For Ocado, the deal validates its technology-as-a-service model, proving it can attract major traditional retailers despite recent corporate instability.
