Ocado Group PLC (LSE:OCDO) has secured a major partnership with Asda to replace the supermarket chain's ecommerce infrastructure, deploying its Smart Platform across the retailer's entire online operation from early 2027.
Asda, one of the UK's largest retailers with £21 billion in annual sales and nearly 1,100 stores, currently fulfils more than 700,000 online orders each week through a network of stores and automated facilities known as dark stores.
The partnership will see Ocado's end-to-end ecommerce solutions rolled out across both physical stores and dark stores, with the system going live in the first quarter of 2027.
The Ocado Smart Platform provides the front-end webshop technology, in-store fulfilment systems, and software to optimise last-mile delivery routes and planning.
The deployment will allow Asda to offer scheduled deliveries, short-lead-time orders, and click-and-collect services, whilst also fulfilling orders placed through third-party food delivery platforms, including Uber Eats, Deliveroo, and Just Eat.
Ocado's system already processes more than 70 million orders annually across 11 countries, according to the company.
The transaction is not expected to materially impact Ocado's financial results in the current year. The company previously forecast cash flow positivity in the second half of this financial year, with full-year profitability expected in 2027.
Tim Steiner, Ocado's chief executive, said the partnership reflected the increasing importance of technology and scale in the competitive UK online grocery market.
Allan Leighton, Asda's executive chairman, said the partnership would strengthen the retailer's online proposition at a time when customer experience is critical to success in the sector.