Plan for distribution to move to DHL’s Derby site.
A George section inside an Asda store(Image: George at Asda)
Supermarket chain Asda is proposing to outsource delivery operations for its George clothing brand’s online orders, a decision that could affect approximately 1,200 employees.
The private equity-backed retailer has unveiled plans to transfer distribution for George.com to DHL from January 2027, relocating all online clothing operations from its facilities in Lymedale, Staffordshire, Brackmills, Northamptonshire, and Washington, Tyne and Wear, to DHL’s Derby site.
The company has assured that all affected employees would have the opportunity to transfer to DHL under the proposals, whilst emphasising that its distribution centres would continue operating and supplying George products to stores for in-shop purchases.
Workers involved in distribution for other areas of the business at these locations will not be impacted by the changes.
The decision follows substantial growth in George.com over 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.
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.”
The trade union GMB has argued that this decision, coming on the heels of recent reports about plans to axe 150 positions as part of an ongoing restructure at the supermarket, “paves the way for a full carve-up of the company” by private equity owners TDR Capital.
GMB national officer Nadine Houghton said: “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 added: “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 dismissed the GMB’s assertions.
He responded: “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.”
