Full Breakdown
Asda Plans to Outsource George Clothing Delivery Operations
1/20/2026, 11:40:44 PM
Overview of the Outsourcing Decision
Supermarket giant Asda is set to outsource the delivery operations for its George clothing brand's online orders, a decision that will affect approximately 1,200 employees. The retailer, owned by private equity firm TDR Capital, has confirmed plans to transfer the distribution of George.com to DHL, with the transition scheduled to begin in January 2027. This strategic move will relocate logistics from Asda's current depots in Lymedale, Staffordshire; Brackmills, Northamptonshire; and Washington, Tyne and Wear, to DHL's facility in Derby.
Implications for Employees
Asda has stated that all employees impacted by this transition will be offered the opportunity to transfer their employment to DHL under the Transfer of Undertakings (Protection of Employment) (TUPE) regulations, which safeguard their existing pay, pension, and length of service. The company emphasized that its existing distribution sites will remain operational for in-store George purchases, and employees involved in other parts of Asda's business will not be affected by this outsourcing.
Growth Strategy Behind the Move
The decision to outsource is part of Asda's strategy to support the significant growth of George.com, which the company forecasts will double in size by 2032. Asda currently handles over 16 million online orders annually for the clothing brand and anticipates reaching full capacity within the next two years. David Lepley, Asda’s chief supply chain officer, stated, “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.”
Criticism from Trade Unions
The move has drawn criticism from the GMB trade union, which argues that it jeopardizes the livelihoods of working-class communities. GMB national officer Nadine Houghton remarked, “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.” The union has called for TDR Capital to clarify its intentions regarding the future of the business.
Official Responses
In response to the criticism, Asda executive chairman Allan Leighton rejected claims that the company is planning to break up its operations, labeling such suggestions as “categorically untrue and, frankly, insulting to all our colleagues.” He emphasized that the company's focus remains on its "Formula for Growth."
Conclusion
Asda's decision to outsource the delivery operations for George clothing marks a significant shift in its logistics strategy, driven by anticipated growth in online sales. While the company assures job protections for affected employees, the move has sparked concerns among trade unions about the broader implications for workers and the future direction of the business under private equity ownership.
