TCS scores another big retail win with Asda

TCS has won a major deal with UK supermarket giant Asda to help it create a new IT operating model following its separation from Walmart.

TCS stated that it would deploy cloud, AI, and security propositions to help Asda deliver the divestiture smoothly, on-time and securely. It will also help the client to 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.

Asda previously announced in December 2021 that it had selected SAP as its primary ERP partner, and that it would implement RISE with SAP S/4HANA on Microsoft Azure, supported by SAP Business Technology Platform and SAP Ariba solutions to digitalise procurement operations.

Asda is the third largest grocery retailer in the UK with 600 stores and it has had an interesting journey since it was acquired by US giant Walmart back in 1999. TDR Capital and the Issa brothers, owners of petrol station operators EG Group, purchased the company for a reported £6.8bn in 2020. Earlier this year, Asda then bought EG’s UK and Ireland business, which comprises some 350 petrol stations and 1,000 food-to-go locations for £2.3bn. The move created a company with combined revenues of close to £30bn.

TCS has a long-standing presence in UK retail, and is already working with a number of Asda’s competitors. In 2022, the company announced a major deal with Asda’s closest rival, Sainsbury, to support and accelerate its cloud strategy. Earlier this year, it extended a partnership with long-term client Marks & Spencer to modernize its core business systems.

In fact, several key members of the Asda technology team formerly worked with TCS during their time at M&S. Asda’s digital strategy is currently being led by Carl Dawson, who joined as CIO in early 2021, having spent six years at M&S. Just last month, Asda also recruited M&S CTO Rob Barnes to play a key role in the separation from Walmart.