Supermarket chain Asda has announced significant changes to its delivery operations for the George clothing brand, with plans to outsource online order logistics to DHL that will affect around 1,200 employees. The private-equity owned retailer confirmed formal proposals to transfer distribution responsibilities for George.com to the logistics giant, with the transition scheduled to commence in January 2027.
Strategic Distribution Shift Across Three Key Locations
This strategic operational change will see all online clothing logistics move from Asda's current distribution centres in Lymedale, Staffordshire; Brackmills, Northamptonshire; and Washington, Tyne and Wear. The operations will relocate to DHL's specialised facility located in Derby, creating a centralised hub for George.com's growing online delivery needs.
Asda has emphasised that all staff members affected by this transition will be offered the opportunity to transfer their employment to DHL under TUPE regulations. These regulations legally protect employees' existing pay structures, pension arrangements, and length of service continuity during such business transfers.
Business Growth Driving Operational Changes
The decision comes in direct response to the substantial expansion of George.com in recent years, with the company forecasting the brand to double in size by 2032. Currently handling more than 16 million online orders annually for the clothing range, Asda anticipates reaching full operational capacity at its existing facilities within the next two years.
David Lepley, Asda's chief supply chain officer, explained the rationale behind the move: "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. The proposed change would begin in January 2027 and be completed later that year."
Union Concerns and Company Reassurances
Trade union GMB has expressed significant concerns about the outsourcing decision, claiming it "paves the way for a full carve-up of the company" by private equity owners TDR Capital. This follows recent reports of plans to cut approximately 150 jobs as part of an ongoing restructuring initiative at the supermarket chain.
Nadine Houghton, GMB national officer, 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. 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 executive chairman Allan Leighton firmly rejected these claims, 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."
Continued Operations at Existing Facilities
Importantly, Asda clarified that its existing distribution sites will remain fully operational despite the George.com logistics transfer. These facilities will continue handling deliveries for in-store George purchases, and employees involved in distribution for other parts of Asda's business at these locations will not be affected by the outsourcing arrangement.
The company maintains that this strategic move represents a necessary evolution to support George.com's ambitious growth targets while ensuring operational efficiency in an increasingly competitive online retail environment.
