Asda delivery decision set to impact 1,200 staff at supermarket chain
Supermarket giant Asda is set to outsource the delivery operations of online orders for clothing brand George, in a decision that will affect around 1,200 employees.
The privately-owned retailer has confirmed its bid to transfer distribution of George.com to DHL, with the change set to come into effect from January 2027.
This strategic move will see all online clothing logistics relocated from Asda’s existing warehouses in Lymedale, Staffordshire; Brackmills, Northamptonshire; and Washington, Tyne and Wear to DHL’s facility in Derby.
Asda said all staff affected by this transition will be offered the opportunity to transfer their jobs to DHL.
The company also announced that its existing distribution facilities will remain operational and will continue to handle deliveries for in-store George pickups.
Employees involved in the distribution of other parts of Asda’s business at these locations will not be affected by the outsourcing.
According to the company, the move comes in response to George.com’s significant growth in recent years and the group’s forecast that it will double in size by 2032.
The company, which currently fulfills more than 16 million online orders per year for its clothing brand, plans to reach full capacity within the next two years.
David Lepley, Asda’s chief supply chain officer, said: “This offer supports the continued growth of our George.com business as we strive to deliver on our ambition for George to become the UK’s largest clothing retailer by volume.
“The proposed change will begin in January 2027 and be completed later that year.
“All colleagues who transfer will do so under TUPE regulations, which protect their current pay, pension and length of service.”
Union GMB claimed the move, which comes after recent reports of plans to cut 150 jobs as part of an ongoing reshuffle at the supermarket, “paves the way for a complete demerger of the company” by private equity owners TDR Capital.
Nadine Houghton, GMB national officer, said: “Hardworking families and working-class communities should not see their livelihoods put at risk by the business decisions of a handful of private equity managers.
“It is time for TDR Capital to come clean and be honest about their business plan – they owe it to every Asda employee.”
Asda chief executive Allan Leighton denied GMB’s claims.
He said: “The suggestion that we wanted to disrupt business is categorically untrue and frankly insulting to all our colleagues.
“There’s only one agenda in this business; it’s called the Growth Formula, and we focus solely on that.”
