Asda plans to outsource George.com delivery in move impacting 1,200 staff

Supermarket giant Asda is planning to outsource delivery for online orders of its George clothing brand in a move impacting around 1,200 workers.

The private-equity owned chain confirmed proposals to shift distribution for George.com to DHL from January 2027, which would see all work for the online clothing arm move from its depots in Lymedale, Staffordshire, Brackmills, Northamptonshire, and Washington, Tyne and Wear, to DHL’s site in Derby.

It said all staff impacted would be able to transfer to DHL under the proposals, adding its distribution sites would remain open and continue delivering to supermarkets for in-store George purchases.

Staff who work in distribution for other parts of the business at those sites will remain unaffected.

The move comes in response to the significant expansion of George.com in recent years and the group’s forecast for it to double in size by 2032, according to the company.

It already handles more than 16 million online orders a year for the clothing brand and expects to reach full capacity in the next two years.

David Lepley, Asda’s chief supply chain officer, 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.”

Trade union GMB claimed the move, which follows recent reports of plans to cut 150 jobs under an ongoing shake-up at the supermarket, “paves the way for a full carve-up of the company” by private equity owners TDR Capital.

Nadine Houghton, GMB national officer, 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 GMB 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.”