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Supermarket giant Asda is poised to outsource the delivery operations for its George clothing brand’s online orders, a decision set to impact approximately 1,200 employees.

The private-equity owned retailer has confirmed proposals to transfer the distribution of George.com to DHL, with the change scheduled to take effect from January 2027.

This strategic move will see all online clothing logistics relocate from Asda’s current depots in Lymedale, Staffordshire; Brackmills, Northamptonshire; and Washington, Tyne and Wear, to DHL’s facility in Derby.

Asda said that all staff affected by this transition will be offered the opportunity to transfer their employment to DHL.

The company also clarified that its existing distribution sites will remain operational, continuing to handle deliveries for in-store George purchases.

Employees involved in distribution for other parts of Asda’s business at these locations will not be affected by the outsourcing.

The move comes in response to the significant expansion of George.com in recent years and the group’s forecast for it to double in size by 2032, according to the company.

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It already handles more than 16 million online orders a year for the clothing brand and expects to reach full capacity in the next two years.

David Lepley, Asda’s chief supply chain officer, 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.

“The proposed change would begin in January 2027 and be completed later that year.

“Any colleagues who transfer will do so under TUPE regulations, which protect their existing pay, pension and length of service.”

Trade union GMB claimed the move, which follows recent reports of plans to cut 150 jobs under an ongoing shake-up at the supermarket, “paves the way for a full carve-up of the company” by private equity owners TDR Capital.

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.

“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.”

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.”