Asda has said it is set to inject another £175m into untangling its IT systems from Walmart, pushing the total cost to over £1bn.

The supermarket giant has told bondholders that it is set to invest more money into the IT transformation as the project was met by further delays, reported The Times.

Dubbed ‘Project Future’, Asda’s IT transformation was first launched after the grocery retailer was bought from previous owner Walmart for £6.8bn, by private equity firm TDR and the Issa brothers in 2021.

Despite Walmart retaining a 10% stake, Asda has remained committed to separating its IT infrastructure from that of the US retailer. However, the project has been beset by delays, Asda admitting to lenders that it had already cost £900 million since 2021.

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It is understood Walmart has agreed to push back a February 2025 deadline for the project, which allowed Asda to dodge a multimillion fine. The UK supermarket said costs of Project Future would this year be reduced, as the project finally nears completion.

The news follows Asda making cost cutting decisions elsewhere in the business, today (31 March) revealing it was considering moving some jobs overseas.

An Asda spokesperson said: “As more customers choose to engage with us in different ways, we are proposing to make some changes to our online customer services team to support this changing dynamic.

“We have opened a consultation with a small number of colleagues affected should this proposal go ahead, and our priority is to do all we can to support them during this process.”

Asda has been contacted for comment.