Ocado Group has signed a long-term ecommerce partnership with Asda, giving the British technology company a significant new UK customer as it seeks to recover from setbacks in North America and expand the reach of its online grocery platform.

The agreement, announced on 29 May, will see Ocado's Smart Platform technology rolled out across Asda's stores, fulfilment hubs and online operations from 2027. The partnership is designed to upgrade Asda's ecommerce infrastructure and support its efforts to strengthen its position in the highly competitive UK grocery delivery market.

Asda, Britain's third-largest supermarket group, operates about 1,100 stores and fulfils more than 700,000 online grocery orders each week. The retailer said Ocado's technology will be introduced across its website, mobile app, in-store picking systems and home delivery operations, enabling services including scheduled deliveries, rapid delivery orders and click-and-collect.

The deal provides a boost for Ocado after a difficult period in its international business. In November, US grocery partner Kroger announced the closure of three underperforming fulfilment centres built using Ocado technology, triggering a sharp fall in Ocado's share price. Kroger later agreed to pay Ocado $350 million in compensation, helping restore investor confidence.

Allan Leighton, executive chairman of Asda, said: "We know that continued success in this highly competitive market is dependent on providing a positive experience for customers every time they shop."

He added that partnering with Ocado would "strengthen our online offer and provide a consistent and high-quality experience for millions of shoppers, from order through to delivery".

Tim Steiner, chief executive of Ocado Group, said: "We're delighted that Asda has chosen Ocado to support the next phase of their online growth."

Steiner told Reuters he hoped the agreement would mark "the start of a long journey together", adding that future opportunities could include the sale of Ocado products through Asda's channels.

Ocado said the partnership is not expected to have a material financial impact during its current financial year. The company reiterated its expectation of becoming cash-flow positive in the second half of FY26 and for the full year in FY27. JPMorgan analyst Marcus Diebel told Reuters that the agreement could generate around £20 million in additional annual core earnings for Ocado from 2027.

Asda has been losing market share to rivals including Tesco, Sainsbury's, Aldi and Lidl, while the supermarket's core profit fell 33 per cent in 2025. The retailer generated more than £21 billion in sales last year, with online grocery revenues of about £3 billion.

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