Asda hopes a fresh technology push will reverse its fortunes after a failed £1bn IT upgrade disrupted stock availability and hurt sales. The UK’s third-largest supermarket chain, backed by private equity firm TDR Capital, reported a 2.3 per cent fall in like-for-like sales in Q2 2026, though group revenue including fuel rose 0.4 per cent to £6.5bn. Asda is deploying AI-powered cameras to detect out-of-stock gaps and electronic price displays to improve efficiency and product availability.

The initiative follows the completion of Project Future, a multiyear IT overhaul intended to replace ageing Walmart systems but which caused significant disruption. In May, Asda licensed software from Ocado to enhance online order picking and home delivery. Executive chair Allan Leighton said the tech drive would boost productivity and availability, with sales expected to follow.

Asda is on track for its first quarter of like-for-like sales growth in two years, recording 0.2 per cent growth in the seven weeks to August 18, excluding fuel. Leighton, who returned to Asda in 2024 after previously leading it in the 1990s, attributed improving performance to better prices, products, and stock availability, noting the turnaround is about a third complete after 18 months. Asda has stabilised its market share at around 11.9 per cent, having lost ground to rivals Tesco and Aldi in recent years.