Asda, the UK supermarket giant, has announced plans to outsource the delivery of online orders for its George clothing brand, a move that will impact around 1,200 employees. The distribution will shift to DHL starting in January 2027, transferring operations from Asda’s existing depots in Lymedale, Staffordshire, Brackmills, Northamptonshire, and Washington, Tyne and Wear, to DHL’s facility in Derby. Asda emphasized that affected workers will have the option to transfer to DHL under the proposed plan.
Expansion and Shift in Operations
The decision comes as part of Asda’s response to the rapid growth of George.com, which has seen a significant increase in online orders. Asda predicts that the online business will double in size by 2032. The retailer currently handles over 16 million orders annually through George.com and expects to hit full capacity in the next two years. David Lepley, Asda’s chief supply chain officer, stated that the move supports the company’s goal to make George the UK’s largest clothing retailer by volume.
Although the outsourcing will affect the delivery side of operations, Asda confirmed that its distribution centers will continue to serve in-store George purchases. Staff working in other departments at the impacted locations will not be affected by the changes.
Asda’s announcement follows recent reports of restructuring at the supermarket, including plans to cut 150 jobs as part of a broader shake-up. The GMB union, representing workers, expressed concerns over the potential long-term effects of the decision. Nadine Houghton, GMB national officer, criticized the move, alleging that it could lead to further cuts and even a complete breakdown of the company by its private equity owners, TDR Capital. “Working-class communities should not have their livelihoods jeopardized by decisions made by private equity executives,” Houghton said.
In response, Asda’s executive chairman, Allan Leighton, dismissed these claims, emphasizing that the company was solely focused on its growth strategy, known as the “Formula for Growth.” Leighton described the suggestion of breaking up the business as “categorically untrue” and “insulting” to employees.
