Asda selects TCS as IT and digital transformation partner
As UK retailer Asda looks to bolster its operations, it has turned to more support from the consulting world – as it undertakes a set of crucial technological transformations. Tata Consultancy Services has expanded its pre-existing strategic partnership, and will now help to introduce a changes IT operating model across the organisation.
Recent developments in the British retail scene have seen the country’s largest supermarkets scrambling for ways to consolidate their operations. Amid spiralling debts, climbing business rates, a weakened pound, and intensifying competition from budget grocery firms Aldi and Lidl, Asda initially flirted with the idea of a colossal merger with competitor Sainsbury’s – a move that was eventually scuppered when the UK’s competition watchdog became involved. In the end, Asda’s owner Walmart exited the firm by selling to was instead sold to Mohsin Issa and Zuber Issa, with the backing of TDR Capital.
The final steps of that process were undertaken earlier in 2023. Asda announced a partnership with digital consulting company Publicis Sapient, in a bid to create an eGrocery business. As it shifted away from Walmart’s mode of operation, the new wing was produced to fulfil online sales in a way the grocer formerly relied on Walmart to execute.
As the year draws to a close, Asda is now looking to transform its wider technological infrastructure, and prepare for life after Walmart with a major digital transformation campaign. To that end, it has announced a multi-year partnership with Tata Consultancy Services (TCS), which will support Asda’s digital transformation and to implement a new organisation-wide IT operating model.
Carl Dawson, Chief Digital & Technology Officer, Asda, commented, “We are confident that this collaboration with TCS will be one of the engines to deliver such a large technology transformation, where we are in the process of reimagining retail. TCS is going to bring together the cutting-edged technologies and help Asda employees and customers have a seamless experience.”
The strategic partnership will leverage TCS’ cloud, AI, and security solutions to help Asda deliver the divestiture smoothly, on-time and securely. This will see also see TCS build a new digital core by implementing multiple cloud-based ERP platforms to streamline Asda’s supply chain forecasting, buying and merchandising processes, HR processes, warehouse management, and e-commerce processes. Additionally, TCS will use its Machine First Delivery Model to automate the retailer’s IT operations, providing a seamless experience for employees and customers, and improving operational resilience.
Mohsin Issa, Chief Executive Officer, Asda, added, “We have a long term vision to grow Asda and bring our great heritage in value to even more communities – and our technology will form a key part of delivering this vision. We have partnered with TCS because they bring experience in retail technology transformation and innovation. We look forward to working with them to accelerate our digital transformation journey and to unlock the potential of our business.”
The move comes as Asda looks to find efficiencies to help pay for a series of price-slashes, courting households struggling amid the UK’s cost-of-living crisis. In October, this saw Asda announce it will invest a further £9 million in price reductions across nearly 250 branded and own-label products – having sunk a £35 million investment into reducing the price of over 600 products across July and August.
