ASDA shoppers are facing product disruptions and online delivery hiccups as the supermarket giant grapples with the fallout of its £1billion IT overhaul.
The upgrade, dubbed Project Future and designed to separate Asda’s systems from its former owner, Walmart, is one of the largest IT projects of its kind in Europe.
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But yesterday boss Allan Leighton admitted the overhaul had caused temporary disruption to product availability both in stores and online.
He warned the problems were likely to continue until the end of September.
Mr Leighton said: “We’ve been doing 50 stores a week, every week, for ten weeks.
“The collective scale of that does cause some friction, some of the systems don’t run as fast as they should do.
“So that’s where the impact has been.”
The disruption has already dented sales, with Asda reporting a 0.2 per cent year-on-year dip in revenue for the second quarter.
But it marks an improvement from a 5.9 per cent drop in the first quarter.
The retailer credited its aggressive Rollback price cuts with luring back budget-conscious customers amid soaring food inflation.
Alongside IT upgrades, the grocer is also investing in store refurbishments and its George clothing brand, and plans to open at least 20 Express shops across the UK within weeks.
OLD COLD RUSH
THE Government’s backtrack on means-tested winter fuel payments has slashed the savings originally forecast.
DWP figures reveal a surge of 181,100 claiming Pension Credit, adding £223million to the annual benefits bill.
Winter cash was restored to those on under £35,000, reducing expected savings from £450million to £227million.
Ex-pensions minister Steve Webb called the policy “ill-fated”.
POUNDS WISE
POUNDLAND is rolling out new £1, £2 and £3 grocery pricing across all UK stores after a successful trial in the West Midlands.
The simplified pricing, with 60 per cent of items at £1, aims to deliver better value.
The move has reduced shoplifting by 25 per cent by dropping high-value items.
It comes after the High Court approved a major restructuring plan to save the discount retailer from administration.
SECOND PAY RISE AT ALDI
ALDI is giving its 28,000 hourly-paid store staff a bigger-than-expected pay rise next month.
Rates will now start at £13.02 an hour, with long-serving employees earning up to £13.95.
In London, hourly pay rises to £14.35, or £14.66 with long service. It is the second pay increase Aldi has introduced this year.
The retailer remains the only one to offer paid breaks, worth £1,425 annually. Boss Giles Hurley said it ensured workers were “fully rewarded”.
