Supermarket giant Asda plans to outsource delivery of online orders for its George clothing brand to DHL, a move affecting approximately 1,200 workers. The distribution shift aims to support the rapid expansion of George.com, which currently handles more than 16 million online orders annually and is forecast to double in size by 2032.
The proposed change would transfer operations from Asda's current depots in Lymedale, Staffordshire, Brackmills, Northamptonshire, and Washington, Tyne and Wear, to a DHL site in Derby. The transition is set to begin in January 2027 and be completed later that year.
Asda's chief supply chain officer David Lepley said: «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. Any colleagues who transfer will do so under TUPE regulations, which protect their existing pay, pension and length of service.»
The company expects to reach full capacity at its current distribution sites within the next two years. Asda's existing depots will continue handling George products sold in stores.
Union criticism
Trade union GMB sharply criticized the outsourcing plan, claiming it «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. 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 rejected the union's claims. He said: «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.»
The outsourcing proposal follows recent reports of plans to cut 150 jobs under an ongoing restructuring at the private equity-owned supermarket chain.
Note: This article was created with Artificial Intelligence (AI).

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