The UK’s third-largest supermarket, Asda, has reported that the cost of its tech divorce from Walmart — which included building a new SAP ERP system — reached £1.22 billion, four years after it first separated from the US retail giant. Results published last month said that one-off separation program would transfer the UK retailer to “a standalone, IT infrastructure using software as a service from best-in-class digital partners”. Asda said the program would “improve operating efficiencies, make better use of data, improve experience for customers and colleagues, and enable the business to be more agile in responding to customers' needs.” During the 2025 financial year, which ended on 31 December, Asda said it completed the conversion of all stores and all distribution centers from “legacy Walmart systems” to the new standalone systems. “Cumulative cash outflow to 31 December 2025 for the project was £1,224 million,” the annual report said. The report [PDF] raises questions over the extent of budget over-runs and delays to the project, as well as disruption caused by its implementation. In February 2021, Bellis Finco plc bought Asda Group from Walmart. As part of the deal, the new owners agreed a Transitional Services Agreement (TSA) with Walmart for an initial period of three years so the US retailer could continue to support the software and IT infrastructure Asda relies on, including a US-run SAP ERP system. Asda embarked on a program called Project Future, designed to separate its IT systems from those of Walmart and to create a new ERP system based on SAP’s latest in-memory technology, S/4HANA, which runs in the cloud. According to annual reports, Asda spent £24 million in 2021 and £189 million ($244 million) in 2022 on the project. In January 2024, The Register reported that Asda had extended its back-office support arrangements with Walmart, which included support for SAP, beyond the initial three years, with insiders telling media outlets "there was never an expectation" to complete the transition from Walmart's systems to Asda's own before 2024 and that the transition would be complete by the end of the year. The annual report for 2023 revealed the exceptional costs of Project Future for the year were £241 million. According to Asda, it moved off Walmart's SAP ERP system to a new instance of S/4HANA hosted in Microsoft's Azure cloud in January 2024. The project involved the separation of more than 2,500 legacy systems and moving every aspect of Asda's operations to its own IT platforms. In June 2024, about 135 IT staff were transferred to outsourcer TCS, while a month later digital transformation chief Mark Simpson left the business after 28 years of service. Despite the move off Walmart's SAP platform, Asda continued to have troubles integrating the new system. In December last 2024 , it decided not to go ahead with planned cutover dates to introduce new systems at some smaller stores as part of the technical divorce. Its annual report for the year 2024 revealed it spent £310 million in exceptional costs on the project. In January 2025, Asda postponed the tech transition of 55 stores to its new systems as Walmart continued to support IT at outlets it sold to the UK retailer in 2021. At the time, a spokesperson told The Register it continued "to make good progress delivering Project Future." In March 2025, The Times reported the total cost would be around £1 billion after a £175 million project increase from £800 million amid a project “plagued by delays”. In August 2025, Asda declared Project Future was complete with all stores, food depots and head offices operating on new systems. Allan Leighton, Asda’s executive chairman, said: “The collective rate of completion did cause some temporary disruption with product availability and in our online experience, which will impact our sales outturn in the current quarter.” Nonetheless, Michael Gleeson, Asda’s chief financial officer, said the retailer was beginning to benefit from Project Future. However, in December 2025, Leighton told the media that delays and disruption caused by the technology separation project set back Asda’s financial turnaround by six months. The tech problems had "materially impacted" its third-quarter trading. The retailer said the effects would continue until the second calendar quarter of 2026. "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 at the time. He said the IT issues were "totally self-inflicted" and put them down to "poor integration, insufficient testing, and a lack of capacity planning." The financial figures from 2025 reveal food, clothing, general merchandise and food service sales were particularly impacted in the second half of the year “by disruption following the substantial completion of Project Future affecting on-shelf availability and customer experience online through increased website friction”. It invested £284 million in the project during the year. The Register has asked Asda if it expects to continue spending on Project Future in 2026. Whether it planned to spend £1.22 billion and whether it planned to finish within the original three-year TSA window, the company’s tech team may be forgiven for hoping it is all in the past. ®