Ocado seals Asda online grocery upgrade deal

Ocado Group Plc has entered a partnership with Asda to develop and upgrade the supermarket’s online grocery business and ecommerce infrastructure, the companies announced on May 29, 2026. The programme is aimed at quickly replacing Asda’s existing online systems and supporting what both sides described as the next phase of Asda’s online growth.

Under the agreement, Ocado will provide technology to overhaul Asda’s digital shopping experience and operational backbone. The focus is on software and in‑store solutions rather than large automated warehouse deployments.

Asda currently handles more than 700,000 ecommerce orders per week in the UK, highlighting the scale of the systems Ocado’s technology will support. The companies framed the partnership as a way to strengthen Asda’s online offer across this high-volume operation.

The arrangement covers Ocado’s front-end webshop, giving Asda access to Ocado’s online storefront technology for customers placing grocery orders. It also includes in-store fulfilment systems designed to manage picking and packing of online orders within Asda supermarkets and dark stores.

Ocado will supply software to support last-mile planning and route efficiency, aiming to improve delivery scheduling and routing for Asda’s fleets. This software will underpin both home delivery and collection services across the retailer’s network.

Asda will also use Ocado’s platform to manage click-and-collect orders, as well as orders placed via third-party delivery apps including Deliveroo, Just Eat and Uber Eats. This extends the partnership beyond Asda’s own website to cover key external delivery channels.

The companies made clear that the agreement does not include deployment of Ocado’s automated robot warehouse facilities. The focus remains on software, store-based fulfilment and last-mile optimisation rather than automation centres.

According to Ocado, its solutions will be rolled out from early 2027 across Asda’s stores and so-called dark stores. The programme is intended to replace Asda’s existing ecommerce infrastructure on a relatively rapid schedule once implementation begins.

Dark stores, which are dedicated facilities for fulfilling online orders rather than serving walk‑in customers, are expected to use the same Ocado systems as conventional Asda supermarkets. This is intended to provide a unified technology platform across Asda’s online operations.

The rollout will cover the full journey from customer order placement on the webshop to in‑store picking, routing, and final delivery or collection. Asda plans to run both its own online channel and third‑party app orders through the new platform.

Financial markets reacted positively to the announcement. Following the news of the agreement, Ocado shares rose sharply in early trading, jumping 13.3% to 236.5 pence and becoming the top riser on the FTSE 250 in that session.

The share price move reflected investor focus on Ocado’s ability to sign new technology partnerships. The Asda deal adds another large UK supermarket to the list of retailers using Ocado’s ecommerce and fulfilment software.

Company statements presented the partnership as a significant step for both parties: for Asda, to reinforce its position in online grocery, and for Ocado, to extend the reach of its technology solutions in a high-volume retail environment.