A major shake-up is underway at Asda as the supermarket chain prepares to axe up to 1,000 jobs and increase automation across its warehouse operations. The move forms part of a broader shift in the retail industry toward robotics and AI to boost efficiency and reduce costs.
George Online Operations Relocated
Asda plans to relocate its George clothing online operation to a single warehouse in Derby, operated by logistics firm DHL. The move consolidates operations from three sites in Northamptonshire, Staffordshire, and Tyne and Wear.
While 1,250 employees are expected to transfer to DHL under TUPE regulations, the company has revealed that only 250 roles will be required at the new facility. This means a potential 1,000 job losses for staff currently employed at the three sites.
An Asda spokesperson said to the Sun the company is working with DHL to support staff, including exploring alternative employment opportunities across both organisations.
Automation Replaces Human Workers
The Derby warehouse is being fitted with “Redline” robots developed by Norwegian company AutoStore. These robots allow retailers to store more stock in less space and process orders faster through automation, effectively replacing many manual warehouse tasks.
Rachelle Wilkins, a national officer for the GMB union, described the situation as “something from a dystopian sci-fi movie” but acknowledged that automation in warehouses is increasingly common. She added that members fear this could signal further cuts in other parts of Asda’s operations, including online grocery fulfillment.
Rising Trend of Automation in Warehousing
The move at Asda reflects wider trends in the UK warehouse sector. According to the UK Warehousing Association, around 760,000 people are employed in warehousing nationwide. Analysts say retailers are turning to automation to offset rising employment costs, including increases in National Insurance and the National Living Wage.
A survey by Savills of 382 UK retailers, manufacturers, and logistics firms found that over half plan to invest in AI and warehouse robotics in the next three years. While one in five companies expect this to reduce staffing needs, one in three believe it will actually increase their workforce, showing a mixed impact of automation on jobs.
The Future of Retail Jobs
For Asda employees, the Derby relocation is a stark reminder of the changing face of retail work. Experts warn that automation will continue to grow, reshaping warehouses and potentially affecting other sectors of retail.
While Asda emphasises efficiency and faster service, the challenge remains to balance technology adoption with workforce stability, ensuring employees are supported during the transition to a more automated future.
