DHL Supply Chain is taking on a major logistics facility in Derby as part of its contract with retail customer George at Asda, in a move expected to boost the retailer’s sales and create 450 jobs.
The site, which is set to open in 2027, will be recommissioned and kitted out with advanced automation technology to drive high-volume, fast-thoughput e-commerce operations and support high-growth, seasonal peaks and wide product ranges.
The facility will consolidate all George.com clothing e-commerce activity into one location and operating model, with the aim of providing Asda with more efficient dispatch capabilities and an enhanced customer proposition.
The facility will feature an AutoStore goods-to-person (GTP) system and pocket sorter technology, which DHL said will enable rapid order processing and increased operational efficiency.
DHL Supply Chain is deploying the AutoStore technology for the first time in the UK at the Derby site. The company said the automation will improve accuracy, accelerate order processing and enhance the efficient use of warehouse space, while also improving the working environment for staff on site.
Once live, the site will be capable of handling up to 350,000 units per day, with end-to-end order turnaround times of approximately 30 minutes, supporting the growing demands of online retail and fashion ecommerce.
The Derby investment forms part of DHL Supply Chain’s previously announced £550m investment in its UK infrastructure.
DHL expects to create around 450 jobs, and the facility will operate as a shared-user site with the flexibility to onboard additional customers.
Martin Willmor, DHL Supply Chain UKI chief executive, said: “Investing in advanced, ecommerce-ready facilities like Derby is central to how we support our customers’ growth strategies.
“This site will combine leading automation technology with DHL Supply Chain’s operational expertise to deliver speed, scalability and resilience for ecommerce fulfilment.
“We’re delighted to be working with George at Asda as we bring this facility online.”
George is a key part of the Asda business, with sales forecast to reach £2bn by 2032, driven by online growth.
Chris Hall, Asda vice president of logistics, said: “Partnering with DHL will give us the fast, scalable and resilient fulfilment operation we need as our ecommerce business grows.
“Their purpose‑built infrastructure will support our ambition for George to become the UK’s largest clothing retailer by volume, helping us handle rising demand while maintaining the high service standards our customers expect.”
