Supermarket behemoth Asda has unveiled significant proposals to outsource the delivery operations for its George clothing brand's online platform, a strategic move that will directly impact approximately 1,200 employees across its distribution network. The private equity-owned retail chain confirmed plans to transition all distribution work for George.com to logistics specialist DHL, commencing in January 2027.
Operational Shift and Site Transitions
Under the proposed arrangement, all delivery operations for the online clothing arm will be relocated from Asda's existing depots in Lymedale, Staffordshire; Brackmills, Northamptonshire; and Washington, Tyne and Wear. These functions will be consolidated at DHL's dedicated facility in Derby. The company has emphasised that its distribution sites will remain operational, continuing to handle deliveries for in-store George purchases. Staff involved in distribution for other business segments at these locations will not be affected by this specific change.
Growth-Driven Strategic Decision
This substantial operational restructuring comes as a direct response to the remarkable expansion of George.com in recent years. The company has revealed ambitious forecasts predicting the online clothing business will double in size by 2032. Currently processing over 16 million online orders annually for the George brand, Asda anticipates reaching full operational capacity within the next two years, necessitating this strategic partnership with an established logistics provider.
David Lepley, Asda's chief supply chain officer, explained the rationale behind the decision: "This proposal fundamentally supports the continued growth trajectory of our George.com business as we actively pursue our ambition for George to become the UK's largest clothing retailer by volume. The proposed transition would initiate in January 2027 with completion anticipated later that same year."
Employee Protections and Union Response
Asda has confirmed that all affected staff members will have the opportunity to transfer to DHL under the Transfer of Undertakings (Protection of Employment) regulations, commonly known as TUPE. This legal framework safeguards their existing employment terms, including pay structures, pension arrangements, and continuity of service.
However, the trade union GMB has expressed strong concerns about the move, suggesting it "paves the way for a full carve-up of the company" by private equity owners TDR Capital. This criticism follows recent reports of approximately 150 job cuts as part of an ongoing organisational restructuring at the supermarket chain.
Nadine Houghton, GMB national officer, stated: "Hardworking families and working-class communities should not see their livelihoods jeopardised due to the business decisions of a handful of private equity executives. TDR Capital must demonstrate transparency and honesty regarding their strategic plan for the business—they owe this clarity to every single Asda worker."
Management Rebuttal and Future Focus
Asda executive chairman Allan Leighton has firmly rejected these union claims, stating: "The suggestion that we are contemplating breaking up the business is categorically untrue and, frankly, insulting to all our dedicated colleagues. There exists only one agenda within this organisation—our Formula for Growth strategy—and we remain exclusively focused on its successful implementation."
The proposed outsourcing arrangement represents a significant evolution in Asda's operational model as it seeks to capitalise on the substantial growth potential of its online clothing division while maintaining competitive delivery services for its expanding customer base.
