Asda has put around 1,200 jobs “at risk” after unveiling plans to outsource delivery operations for its George.com online clothing business.
The supermarket chain said the proposed overhaul would begin from January 2027.
Asda plans to outsource delivery operations for its George.com online clothing business to logistics firm DHL.
The supermarket chain, which is owned by private equity group TDR Capital, said the plans would affect workers at three Asda distribution centres.
Roles linked to George.com deliveries could be impacted as operations are relocated.
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.”
Asda confirmed that its existing depots will continue to supply George clothing to physical stores, meaning in-store sales will not be affected by the proposed changes.
The affected sites include depots in Lymedale, Staffordshire, Brackmills in Northamptonshire, and Washington in Tyne and Wear, with all George.com distribution work transferring to DHL’s Derby location.
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.
Employees working on other aspects of the business at these warehouses will not be affected by the proposals
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ASDAThose who do move across to DHL would be protected under TUPE regulations, which safeguard existing pay, pension entitlements and length of service.
David Lepley, Asda’s chief supply chain officer, said: “Any colleagues who transfer will do so under TUPE regulations, which protect their existing pay, pension and length of service.”
The outsourcing decision stems from George.com’s rapid growth trajectory, with the company projecting the online clothing arm will double in size by 2032.
Currently processing over 16 million orders annually, the retailer anticipates reaching maximum capacity at its existing facilities within the next two years.
This proposal supports the continued growth of our George.com business
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ASDAMr Lepley added: “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 changes are due to begin in January 2027 and are expected to be finished later that year.
The GMB union has sharply criticised the announcement, arguing it “paves the way for a full carve-up of the company” by TDR Capital.
Ms Houghton said: “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.”
The outsourcing decision stems from George.com’s rapid growth trajectory
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GETTYShe called on TDR Capital to be transparent about its intentions for the supermarket chain.
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.”