Asda has entered a partnership with Ocado Group to introduce the latter’s Smart Platform across its online grocery business while also posting reduced sales declines in its Q1 2026 trading update.
The supermarket said it handles more than 700,000 online grocery orders each week and will deploy Ocado’s technology to its website and mobile app, in-store picking operations, and home delivery service.
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The rollout is due to start in 2027 with changes to Asda’s website and online shopping journey, including improved search, more relevant product recommendations, and a simpler checkout process.
After that, the retailer plans to introduce new in-store fulfilment and last-mile delivery solutions intended to improve on-time deliveries and increase the number of available slots through better use of its existing fleet.
Under the agreement, Asda said it will keep full control of its customer offerings, pricing, and online operations.
Scheduled home delivery and click-and-collect orders will continue to be fulfilled through Asda stores and its current fulfilment hubs.
Orders made through rapid delivery partners, including Deliveroo, Just Eat, and Uber Eats, will be picked by Asda using Ocado’s technology and delivered by the relevant third-party provider.
Ocado said its in-store fulfilment solutions are in use in more than 1,000 grocery stores globally, while the wider platform supports about 70 million orders each year.
Asda executive chairman Allan 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.”
In its trading update, Asda reported total revenues excluding fuel of £5bn ($6.73bn) for the period ending 31 March 2026, a year-on-year decline of 1.5%.
Like-for-like sales changed from negative 4.2% in Q4 2025 to -0.8% in Q1, or -1.3% on an Easter-adjusted basis.
Product availability remained above 95% during the quarter, which the company described as an eight-year high.
The supermarket also said new partnerships with third-party food brands are expected to support further momentum in its small store estate.
Leighton added: “In our previous trading update, I described performance as edging forward, and this continued through Q1, finishing the quarter broadly where we expected to be.”
