Supermarket giant Asda has announced a significant proposal to outsource the delivery operations for its popular George clothing brand's online orders to logistics specialist DHL, a move that could impact approximately 1,200 employees across the United Kingdom.
Strategic Shift in Distribution
The private equity-backed retailer has confirmed plans to transfer all online clothing distribution for George.com to DHL, commencing in January 2027. This strategic shift will involve relocating operations from Asda's existing facilities in Lymedale, Staffordshire, Brackmills, Northamptonshire, and Washington, Tyne and Wear, to DHL's centralised site in Derby.
Asda has emphasised that all affected staff members will be offered the opportunity to transfer to DHL under the proposed arrangements, with their existing employment terms protected under TUPE regulations. This protection includes maintaining current pay levels, pension arrangements, and length of service recognition.
Continued Store Operations
The company has clarified that its distribution centres will continue normal operations for supplying George products to physical stores, meaning customers will still find the clothing range available for in-shop purchases. Workers involved in distribution for other business areas at these locations will not be affected by the proposed changes.
Driving Online Growth
This decision follows substantial expansion of George.com in recent years, with the group projecting the online platform will double in size by 2032. The clothing brand currently processes more than 16 million online orders annually and is expected to reach maximum capacity within the next two years, necessitating operational changes.
David Lepley, Asda's chief supply chain officer, commented: "This proposal supports the continued growth of our George.com business as we seek to achieve our ambition for George to become the UK's largest clothing retailer by volume."
He added: "The proposed change would begin in January 2027 and be completed later that year. Any colleagues who transfer will do so under TUPE regulations, which protect their existing pay, pension and length of service."
Union Concerns and Company Response
The trade union GMB has expressed serious concerns about the proposal, arguing it follows recent reports about plans to cut 150 positions as part of an ongoing restructure at the supermarket. The union suggests this decision "paves the way for a full carve-up of the company" by private equity owners TDR Capital.
GMB national officer Nadine Houghton stated: "Hardworking families and working-class communities should not see their livelihoods put at risk due to the business decisions of a handful of private equity executives."
She continued: "It is time for TDR Capital to come clean and be honest about their plan for the business – they owe it to every single Asda worker."
Asda's executive chairman Allan Leighton has firmly dismissed these assertions, responding: "The suggestion that we are looking to break up the business is categorically untrue and, frankly, insulting to all our colleagues. There is only one agenda in this business – it's called the Formula for Growth and we are solely focused on that."
