Retail giant Asda has announced plans to outsource the delivery operations of its George clothing brand’s online orders to DHL, affecting around 1,200 employees. Beginning in January 2027, the distribution for George.com will shift from Asda’s current centres in Lymedale (Staffordshire), Brackmills (Northamptonshire), and Washington (Tyne and Wear) to a DHL facility in Derby.
The supermarket chain, owned by private equity firm TDR Capital, has assured that all impacted employees will have the opportunity to transfer to DHL under TUPE regulations, preserving their existing pay, pensions, and length of service. Importantly, Asda’s distribution centres will continue to supply George products for supermarket in-store sales, and staff involved with other business areas at these sites will remain unaffected.
This move comes as George.com experiences significant growth, handling over 16 million online orders annually and expected to double in size by 2032. The current facilities are projected to reach capacity within two years, prompting Asda’s decision to outsource to meet rising demand.
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David Lepley, Asda’s Chief Supply Chain Officer, stated, “This proposal supports the continued growth of George.com as we aim for the brand to become the UK’s largest clothing retailer by volume.” He added that the transition would start in January 2027 and conclude later that year.
However, the GMB trade union criticized the decision, highlighting concerns about job security following recent news of 150 job cuts amid Asda’s restructuring. Nadine Houghton, GMB National Officer, accused private equity owners of risking the livelihoods of workers and called for transparency regarding the company’s future plans.
In response, Asda’s Executive Chairman Allan Leighton firmly rejected the claims, saying, “The suggestion that we are breaking up the business is categorically untrue and insulting to our colleagues. Our sole focus remains on growth under the Formula for Growth strategy.”