Asda strategically targets its smaller stores for IT upgrades this Christmas, aiming to minimize disruption during the peak shopping period.
- The retailer’s Project Future emphasizes upgrading 850 smaller sites rather than larger supermarkets, deferring major changes in bigger outlets till early next year.
- Asda’s £430m technology overhaul involves significant IT system conversions, part of its separation from former owner Walmart’s operational infrastructure.
- The initiative promises operational improvements and enhanced data capabilities, despite some technical challenges like a payroll system glitch.
- Asda maintains a pragmatic approach, ensuring minimal impact on customers and colleagues, while asserting this strategy offers the best systems in the grocery sector.
Asda plans to prioritize IT system transformations in its smaller stores during the critical Christmas season. This strategic shift, known as Project Future, aims to address potential disruptions by focusing on approximately 850 smaller outlets, including petrol stations, compact supermarkets, and convenience stores, rather than the larger stores.
The transformation will gain momentum in larger superstores and depots after the holiday season, with accelerated activities expected from early January. The intent behind this staggered rollout is to avoid operational hiccups and ensure seamless service during peak shopping times.
The extensive project, described as “Europe’s largest IT transformation,” is a crucial part of Asda’s efforts to dissociate from Walmart’s systems following its acquisition by the Issa brothers and TDR Capital. This transition involves revamping 2,500 systems with an investment of £430 million, and the creation of hundreds of jobs dedicated to this massive overhaul.
According to Matt Kelleher, Asda’s chief digital officer, delivering aspects of the program swiftly while maintaining sensitivity to the impact on employees, customers, and suppliers during the busiest time of the year is critical.
So far, Asda has completed multiple conversions, including new systems for finance, checkouts, HR and payroll, CRM, distribution centers, and its clothing brand George.com. This transformation includes the installation of 16,500 new checkouts, 28,000 Scan & Go devices, the full conversion of 20 depots, and migration of over 9.6 million historical orders online.
The company describes its emphasis on smaller sites during the golden quarter as “sensible and pragmatic,” striving to provide customers the best possible holiday experience with minimal disruption. The remainder of Project Future continues at a swift pace, laying foundations for a complete break from Walmart’s technology infrastructure.
Despite facing some transitional challenges, such as a glitch in the new payroll system affecting thousands of employees earlier this year, Asda stands by its approach, asserting it will bring significant operational improvements and unrivaled data capabilities to the grocery sector.
Asda’s strategic focus on smaller stores for IT upgrades this Christmas reinforces its commitment to minimizing operational disruptions during peak periods.
