Asda is set to outsource the distribution of its George clothing brand to logistics firm DHL in a move that could place more than 1,000 jobs at risk, according to the GMB union.
The union said the supermarket chain plans to shift delivery operations for the clothing label from three existing depots to a single DHL-run site in Derby, potentially affecting up to 1,200 roles.
At present, Asda operates George distribution through facilities at Lymedale, North East Clothing and Brackmills. Under the proposed restructure, those operations would be consolidated into one depot managed by DHL, raising concerns about redundancies and the future of the current sites.
The announcement comes amid wider scrutiny of Asda’s cost-cutting efforts and operational changes following its private equity-backed ownership transition. While Asda has not publicly detailed the full impact of the distribution outsourcing on its workforce, GMB said the move would have significant consequences for employees and the communities where the depots are based.
Nadine Houghton, GMB National Officer, said the union would focus on protecting workers and their livelihoods as the plans progress.
“GMB’s priority is and always will be to protect our members jobs – we give our members our unwavering commitment on this.”
Houghton highlighted the potential household impact of any job losses, pointing to families whose incomes depend entirely on work at the depots.
“In the Lymedale depot alone there are 14 couples with children whose entire household income relies on working there.”
GMB also linked the outsourcing decision to broader criticism of Asda’s private equity buyout, arguing the ownership structure has led to decisions that undermine employees, service levels and the long-term stability of the business.
“GMB is clear; the private equity buyout of ASDA has been a disaster for workers, customers, the supply chain and communities.”
The union said recent job cuts and the proposed outsourcing of George distribution suggest a larger restructuring strategy is under way, which it believes could reshape the company further.
“The recent job cuts announcement and now the outsourcing of clothing distribution paves the way for a full carve up of the company.”
Asda’s George clothing brand is a major part of the retailer’s offering, contributing to its non-food sales and serving as a competitive lever in the UK’s supermarket sector, where value-led clothing ranges have become an important driver of footfall. Any disruption to distribution could affect product availability, stock turnaround and operational costs, though outsourcing may also provide efficiencies for the business.
The decision to consolidate into a single distribution site operated by DHL could reduce Asda’s direct handling of logistics, transferring responsibility to a third-party specialist. Such arrangements are common across retail supply chains, particularly where businesses aim to simplify networks, lower overheads or respond to shifting consumer demand.
However, unions have often raised concerns that outsourcing can weaken job security, reduce terms and conditions, and limit accountability for workforce impacts.
Houghton said the union believes working families should not face job insecurity as a result of high-level business decisions taken by financial owners.
“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.”
GMB is calling for greater clarity from TDR Capital, the private equity firm involved in Asda’s ownership, on its intentions for the retailer and the long-term direction of the business.
“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 union’s intervention adds pressure on Asda to outline how the transition will be managed, including whether staff at the current depots will be offered redeployment opportunities, transfers, or redundancy packages, and what role DHL will play in employment decisions at the Derby site.
For local economies around Lymedale, North East Clothing and Brackmills, the potential loss of jobs could have ripple effects, particularly if large numbers of roles are removed in a short period. Distribution centres often provide stable employment and support surrounding service industries, meaning any downsizing can have broader community consequences.
The outsourcing plan also comes at a time when UK retailers are balancing cost pressures, wage increases and changing consumer behaviour, while continuing to invest in supply chain resilience after recent years of disruption. For Asda, the shift may be aimed at strengthening its logistics capabilities for George, but the union argues the human cost could be substantial.
GMB said it will continue engaging with the company and representing affected members as the process unfolds.
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