Asda IT upgrade costs expected to pass £1bn this year

It recently told bondholders that it would invest a further £175m to separate its technology systems from Walmart, its previous owner.

The upgrade known as Project Future was launched after the grocer was bought by private equity firm TDR Capital alongside the Issa brothers. Asda told lenders the scheme has already cost £900m since 2021, according to The Times.

The project has been hit with delays as Asda has been removing its IT infrastructure from Walmart. The US giant agreed to extend its February deadline for the project, preventing Asda from being fined millions.

Asda said the costs of Project Future would be significantly lower this year as it is finished.

The Times also reported that Asda has paused the opening of any standalone convenience stores for the past year after it previously said it would open 300 Asda Express stores by 2026.

The last shop was opened in February 2024, despite it being a fast-growing part of the business.

The retailer has instead focused on growing c-stores through acquisition, as in 2023 it bought the UK arm of EG. In 2022, it took 132 forecourts from the Co-op.

Asda said it converted 234 of the former EG and Co-op stores into Asda Express sites last year, with plans for more standalone stores this year.