Business
Ocado Group & Asda to enter ecommerce partnership
Ocado Group has announced a significant ecommerce partnership with Asda, aiming to upgrade Asda's online grocery business across the UK using Ocado's Smart Platform, with rollout planned from 2027. This collaboration will integrate Ocado's front-end webshop, In-Store Fulfilment, and last-mile logistics software into Asda's operations, including its network of over 1,100 stores and dark stores, and will also support fulfillment for aggregator platforms. The transaction is not expected to materially impact Ocado's financial results in FY26, but the company anticipates turning cash flow positive in the second half of FY26 and achieving full-year cash flow positivity in FY27. Disclaimer*
About this update from Ocado Group Plc
INSIDE INFORMATION THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 AS IT FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. 29th May 2026 Ocado Group and Asda to enter ecommerce partnership Ocado Group ("Ocado") and Asda have agreed to enter a partnership to develop Asda's online business across the UK with the Ocado Smart Platform ("OSP"). Asda is one of the UK's largest retailers, with total sales in 2025 of more than £21bn, and operations across c.1,100 stores nationwide. Asda also operates a substantial online grocery business, fulfilling more than 700,000 ecommerce orders weekly from a network of stores and dark stores across the UK. The focus of the partnership will be to quickly replace and upgrade Asda's existing ecommerce infrastructure, with Ocado's solutions to be rolled out across both stores and dark stores from 2027. Ocado and Asda plan to deploy Ocado's end-to-end solutions across Asda ecommerce operations. These solutions include Ocado's front-end (webshop), In-Store Fulfilment, and software to support last mile planning and route efficiency. Under the agreed commercial framework, Ocado and Asda will work closely together in the coming months to enable go live in early 2027. Using Ocado's Smart Platform, Asda will be able to offer a full range of online services, including scheduled and short lead-time orders, as well as click & collect. Asda will also use Ocado's platform to fulfil and deliver orders placed through aggregator platforms such as Uber Eats, Deliveroo, and Just Eat. Expected financial impact The transaction is not expected to have material financial impact in FY26. Ocado expects to turn cash flow positive during the second half of this financial year, with Full Year cash flow positivity expected in FY27. Tim Steiner, CEO of Ocado Group, said: "We're delighted that Asda has chosen Ocado to support the next phase of their online growth. The UK remains one of the world's most competitive and fast-evolving online grocery markets, where technology, scale and continuous innovation are increasingly important for retailers looking to maintain leadership positions. "Through this partnership, Asda will be able to deploy a technology platform already processing more than 70 million orders annually worldwide, supporting market-leading customer propositions across 11 countries. Asda will also benefit from Ocado's significantly evolved platform, giving them the flexibility to adapt as the market continues to develop." Allan Leighton, Executive Chairman, Asda, said: "Asda is the cheapest full-range supermarket, as consistently shown by independent price comparisons from Which? and The Grocer, and has a large, well-established online offer." "We know that continued success in this highly competitive market is dependent on providing a positive experience for customers every time they shop. 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." Contacts and conference call There will be a conference call for institutional investors and analysts at 8:00am UKT. Please register for this call by emailing [email protected]. Tim Steiner, Chief Executive Officer Stephen Daintith, Chief Financial Officer Nick Coulter, VP of Group Capital Markets and FP&A ([email protected]) Jamie Kerr, Director of Communications ([email protected]) Lucy Legh, Matt Denham, Jack Gault at Headland Consultancy - ([email protected]), on +44 (0) 20 3805 4822 Further information about Ocado is available on its website at www.ocadogroup.com . Person responsible for arranging release of this announcement: Mollie Stoker Group General Counsel and Company Secretary Ocado Group plc Buildings One & Two Trident Place Mosquito Way Hatfield, Hertfordshire AL10 9UL Email: [email protected] Ocado Group plc LEI: 213800LO8F61YB8MBC74