Asda to outsource George distribution, 1,200 jobs at risk

Supermarket giant Asda has said it plans to partially relocate and outsource the distribution of its George clothing brand, putting at risk around 1,200 jobs. The retailer has confirmed to multiple media outlets, including the BBC, that it plans to move the online operations of the label to DHL’s depot in Derby from January 2027.

This would see work move away from depots in Brackmills, Northamptonshire; Washington, Tyne & Wear; and Lymedale, Staffordshire. Impacted staff may be able to transfer to DHL under the proposals. The sites will continue delivering George products to stores for physical sales.

In a statement to the press, 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.”

Responding to the news, Nadine Houghton, the national officer for trade union GMB, said the proposals built on growing concerns over employment following Asda’s private equity buyout in 2021. Houghton referred to recent reports suggesting plans to cut 150 jobs as part of a wider reorganisation at the supermarket chain.

She added that the sale had been a “disaster for workers, customers, the supply chain and communities”, noting: “The recent job cuts announcement and now the outsourcing of clothing distribution paves the way for a full carve up of the company.”

Allan Leighton, Asda’s executive chairman, told The Industry.Fashion that “the suggestion that we are looking to break up the business is categorically untrue”. “There is only one agenda in this business – it’s called the Formula for Growth and we are solely focused on that,” he continued.