"Chairman Allan Leighton told the media that delays and disruption caused by the technology separation from previous owner Walmart, which ran back-office SAP systems, set back his financial turnaround by six months. Despite technically completing the program dubbed Project Future in August, the retailer said the effects would continue until the second calendar quarter next year. "The downturn in sales and to a degree the market share issue is totally driven by Future, it's not driven by any competitive activity," Leighton told The Times."
"Asda's delayed tech divorce from Walmart, which involved a complete SAP ERP upgrade, has caused "severe disruption" hitting the UK retailer's quarterly revenue. The UK's third-largest supermarket said the tech problems "materially impacted" its third-quarter trading, contributing to a 2.8 percent year-on-year fall in revenue to £5.1 billion. Chairman Allan Leighton told the media that delays and disruption caused by the technology separation from previous owner Walmart, which ran back-office SAP systems, set back his financial turnaround by six months."
Asda's migration off Walmart-run back-office SAP systems under Project Future caused severe disruption that materially impacted third-quarter trading, driving revenue down 2.8% year-on-year to £5.1 billion. The retailer completed the technical migration in August but expects effects to persist until the second calendar quarter of next year. Chairman Allan Leighton attributed the downturn and market share loss to the separation project, citing poor integration, insufficient testing and lack of capacity planning. The move followed a 2021 deal with SAP to move legacy on-prem ERP to S/4HANA in the cloud and an initial Project Future budget of £189 million.
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