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supermarket giant Asda is preparing to outsource the delivery of online orders for its George clothing brand, a decision that will affect about 1,200 employees.
The private equity retailer has confirmed its proposal to transfer distribution rights for George.com to DHL, with the change scheduled to take effect in January 2027.
The strategic move will see all online clothing logistics relocated from Asda’s current warehouses in Limedale, Staffordshire; Brake Mills, Northamptonshire; and Washington, Tyne and Wear, to DHL’s factory in Derby.
Asda said all employees affected by the transition will have the opportunity to transfer their jobs to DHL.
The company also clarified that its existing delivery sites will continue to operate and continue to handle delivery of George’s in-store purchases.
Staff involved in distribution for other parts of Asda’s business at these locations will not be affected by the outsourcing.
According to the company, the move comes in response to George.com’s significant expansion in recent years, which it expects will double in size by 2032.
The company already handles more than 16 million online orders for the clothing brand annually and expects to reach full production within the next two years.
David Lepley, chief supply chain officer at Asda, said: “This proposal supports the continued growth of our George.com business as we seek to deliver on George’s ambition to become the UK’s largest clothing retailer by volume.
“The proposed changes will begin in January 2027 and be completed later that year.
“Any colleagues who transfer will do so under TUPE rules, which protect their existing pay, pensions and years of service.”
Trade union GMB claimed that recent reports that the supermarket was undergoing a restructuring with plans to cut 150 jobs “paved the way for a full carve-up of the company by private equity owner TDR Capital”.
GMB national officer Nadine Houghton said: “Hard-working families and working-class communities should not see their livelihoods threatened because of the business decisions of a handful of private equity executives.
“It’s time for TDR Capital to come clean and be honest about their business plans – they owe it to every Asda employee.”
Asda executive chairman Allan Leighton rejected GMB’s allegations.
He said: “The suggestion that we are seeking to demerge the business is absolutely untrue and, frankly, an insult to all our colleagues.
“The industry has only one agenda – it’s called the growth formula and we’re focused solely on that.”