Asda is undertaking a major transformation of IT systems across its smaller stores to minimise customer disruption during the Christmas period.
- The initiative is part of ‘Project Future’, which is described as Europe’s largest IT transformation endeavour, aiming to update 2,500 systems.
- The focus will be on 850 smaller sites, such as petrol stations and convenience stores, with larger stores scheduled for updates post-Christmas.
- The transformation is crucial for Asda’s separation from Walmart’s infrastructure following its acquisition by the Issa brothers and TDR Capital.
- Challenges have emerged, including a payroll system glitch affecting thousands of workers, but Asda aims for completion with improved data capabilities.
In a strategic move to minimise disruption over the festive season, Asda is focusing its IT transformation efforts on smaller outlets. This approach is part of the retailer’s larger plan to revamp its technology under the banner of ‘Project Future’, which is being hailed as Europe’s most extensive IT overhaul. By the project’s completion, 2,500 systems will have been updated, a necessary step as Asda transitions away from the technology infrastructure of former owner Walmart.
Asda’s strategy emphasises the completion of IT updates in 850 smaller locations, such as petrol stations and Asda Express convenience stores. This decision reflects a pragmatic approach, ensuring minimal interference with customer experience during peak trading periods while larger stores, which attract the bulk of its customer base, remain unchanged until after the holidays.
This IT overhaul is part of Asda’s broader plan following its acquisition by the Issa brothers and TDR Capital in 2021, valued at £6.8 billion. The ambitious project involves investments of £430 million and the creation of hundreds of jobs, as noted in the latest accounts of parent company Bellis Finco.
Asda Chief Digital Officer Matt Kelleher stated, “We’re continuing to deliver different aspects of the programme at pace, while being mindful of any potential impact on colleagues, customers and suppliers during the busiest period of the year.” His statement underlines the company’s commitment to both rapid progress and stakeholder consideration.
Significant progress has been achieved over the past nine months, including 16,500 new checkouts and 28,000 Scan & Go devices across stores, alongside full IT system migration at 20 depots. Asda has also integrated over 9.6 million orders from its clothing brand George onto a new online platform and launched a system effectively streamlining stock processing from delivery to shelf.
Despite these advancements, challenges have arisen, notably a glitch in the new payroll system that affected thousands of workers earlier this year. This highlights the complexity and potential risks inherent in such a comprehensive IT transformation. However, the retailer maintains that these changes are set to provide the best systems in the grocery sector, aiming to enhance operational efficiency and data management.
Asda’s current focus and methodical approach illustrate its dedication to improving technology infrastructure while safeguarding seasonal operations.
