Asda and Ocado have reached an agreement for the former to implement Ocado Smart Platform’s end-to-end software solutions across Asda’s store network. 

Created by The Ocado Group, the platform uses automation, AI and data science to optimise each stage of the online grocery operation.

Described as “built by grocers, for grocers”, Morrisons has already adopted the platform, alongside businesses around the world including Coles, Kroger and Bonpreu Esclat. 

On the partnership between the two grocers, investment bank Peel Hunt commented that upgrading the front-end software to Ocado’s Smart Platform should deliver efficiency benefits quickly. 

Peel Hunt estimated that Asda currently generates around £3bn in ecommerce revenue per year, involving 700,000 orders per week. 

It said that the Smart Platform would give Asda an advantage when competing with other retailers, noting that its total market share has fallen from 15% in 2020 to 11.5% today, with profits being eroded by Lidl and Aldi. 

This analysis matches NIQ data published last week, which showed that Asda sales had declined by 4.7% over the previous 12 weeks. 

Meanwhile, during the same period, Ocado grew sales by 15.1%, making it the fastest-growing retailer, closely followed by Lidl at 9.3%. 

Wider Ocado update 

Alongside the partnership news with Asda, Ocado management confirmed that the business was on track to become cashflow-positive in the second half of 2026. 

This follows a difficult year for Ocado, which reported a negative cash position of £213m in February this year. 

At the time, CEO Tim Steiner said that a significant number of jobs would be cut as part of a wider cost-reduction programme. It was estimated that around 1,000 positions would be eliminated.