Asda has avoided fines despite missing the deadline for its £800m IT upgrade

According to The Telegraph, Asda has avoided penalties after Walmart agreed to extend the timeline for the British retailer to separate from the American firm’s computer systems.

The separation involves Asda extricating itself from Walmart’s technology platform, requiring the disentanglement of thousands of programmes handling everything from tills to administration and staff wages. The move was necessary to avoid charges for the continued use of Walmart’s systems.

Asda was purchased from Walmart in 2021 by private equity firm TDR Capital and brothers Mohsin and Zuber Issa.

The initiative, known as Project Future, was meant to be finished by February 2025. Earlier this year, industry experts had cautioned that Asda could face millions in charges if it missed this target.

However, the two companies have reportedly negotiated a revised agreement that removes the February deadline.

The project has encountered several difficulties. Last March, a botched system update led to thousands of staff receiving incorrect wage slips. Later that year, another technical mishap disrupted thousands of orders for its George clothing range.

An Asda spokesman told The Telegraph: “We continue to make good progress delivering Project Future and have successfully migrated large parts of our business to brand-new systems.

“We will continue to take a pragmatic approach when delivering the remainder of the programme and Walmart continues to be incredibly supportive in every way in helping with the implementation.”