TCS Wins Digital Transformation Deal From Walmart’s Former U.K. Unit

Tata Consultancy Services Ltd. has won a multi-year contract from Asda Stores Ltd. for the digital transformation of the British supermarket chain.

The deal will see India’s biggest outsourcer implement a new organisation-wide IT operating model for the former Walmart Inc. unit, according to an exchange filing on Wednesday. Asda Stores will leverage TCS’ cloud, AI, and security solutions for a smoother separation from the U.S.’ biggest big-box retailer. TCS will also build a new digital core for Asda Stores to streamline its business processes, including supply chain and e-commerce.

“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,” Carl Dawson, chief digital and technology officer at Asda Stores, said in the statement. “TCS is going to bring together cutting-edge technologies and help Asda employees and customers have a seamless experience.”

Founded in Yorkshire in 1949, Asda Stores battled bankruptcy and merger threats in the latter half of the 20th century, only to be acquired by Walmart Inc. for £6.7 billion in 1999, in what was seen by the British media as a corporate raid. In 2021, British-Indian billionaires Mohsin Issa and Zuber Issa acquired the company for £6.8 billion, with Walmart retaining “an equity investment” and a board seat.

In February this year, Asda Stores partnered with digital consulting firm Publicis Sapient to build its own e-grocery business, severing its final ties with Walmart. Now, TCS has stepped in with a digital transformation plan.

“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,” Mohsin Issa, chief executive officer at Asda Stores, said in the statement.

“We have partnered with TCS because they bring in retail technology transformation and innovation. We look forward to working with them to accelerate our digital transformation and unlock business potential.”