Asda nears £1bn IT upgrade completion

Asda is reportedly nearing completion of its £1bn IT upgrade, six months later than originally planned, according to reports from The Telegraph.

The supermarket is expected to finish separating its own computer systems from the systems of former owner Walmart within the next couple of weeks.

The company has spent the previous four years untangling thousands of programmes responsible for its checkouts, administration and payroll from Walmart systems, in order to avoid a penalty charge for the continued use of the technology.

The changeover, referred to as Project Future, has been beset with delays and complications, including a botched update which resulted in thousands of employees being paid incorrectly.

Asda previously avoided a multi-million pound fine earlier in the year after Walmart agreed to extend its February 2025 deadline for the project.

It is believed that the project cost has exceeded £1bn after Asda invested an additional £175m this year to go with the £900m it had already spent since 2021.

It comes after it was reported that Asda was in advanced discussions to sell around 20 stores to US investment firm Blue Owl Capital in a deal worth approximately £400m.

The sale-and-leaseback transaction would see the Leeds-based supermarket retain control of the sites while raising funds to support its ongoing turnaround efforts.

The move comes as Asda seeks to improve its competitiveness against both mainstream and discount rivals.

The outlet reported that chair Allan Leighton’s strategy includes sharper pricing, improved stock availability and greater cost efficiencies.

Asda completed a similar deal in 2023, raising £650m through a sale-and-leaseback agreement with US-based Realty Income Corporation. Eastdil, the real estate investment bank, is running the sale process.

The supermarket was sold by Walmart in 2021 to TDR Capital and Mohsin and Zuber Issa.

Asda declined to comment when approached.