Asda is planning to outsource delivery of its clothing brand George to DHL, risking up to 1,200 jobs in the process, the GMB Union is warning.
The supermarket giant currently runs distribution of its clothing label through three depots at Lymedale, Washington and Brackmills.
Under the plan, the work will all move to one depot run by DHL in Derby, the union claims.
Asda confirmed proposals to shift distribution for George.com to DHL from January 2027. However the company insists all three existing sites will remain open to supply stores and that the proposal affects only online fulfilment, not clothing distribution for in-store sale.
Asda’s George.com division processes more than 16 million orders annually and is expected to double in size by 2032, according to Asda.
The supermarket said the current facilities do not meet the forecasted growth in demand and will reach capacity within two years.
Asda said workers affected by the move will transfer under TUPE regulations, which safeguard existing pay, pensions and service length, before becoming DHL employees.
However, Nadine Houghton, GMB National Officer, condemned the plans. She slammed private equity firm TDR Capital, the owner of Asda, accusing it of planning to “carve up” the business.
“GMB’s priority is and always will be to protect our members jobs - we give our members our unwavering commitment on this.
“In the Lymedale depot alone there are 14 couples with children whose entire household income relies on working there,” she said.
“GMB is clear; the private equity buyout of ASDA has been a disaster for workers, customers, the supply chain and communities.
“The recent job cuts announcement and now the outsourcing of clothing distribution paves the way for a full carve up of the company.
She added: “Hard working 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.”
TDR Capital acquired ASDA jointly with the Issa brothers in February 2021. The company was acquired from US retailer, Walmart, who TDR Capital say remains invested in the business. In November 2024, TDR Capital acquired the shares of one of the Issa brothers, making it the majority shareholder.
This Christmas Asda saw a 6.5% slump in sales over the festive period, according to recent research from consultancy NIQ.
