DHL backs Derby ecommerce hub with George at Asda

DHL Supply Chain is taking on a major logistics facility in Derby and turning it into a next-generation ecommerce fulfilment hub, with George at Asda confirmed as the anchor customer and a 2027 go-live date in view.

The site will operate as a shared-user facility, but its first major role is clear. It will consolidate all George.com clothing ecommerce activity into a single location and operating model. DHL said the building will be recommissioned and upgraded with advanced automation, including an AutoStore goods-to-person system and pocket sorter technology, to support high-volume retail fulfilment with short order turnaround times.

Planned capacity is up to 350,000 units a day, with end-to-end processing targeted at around 30 minutes. That gives the project significance beyond a single customer relationship. UK ecommerce operators are no longer investing only in more warehouse space. They are investing in denser storage, faster picking logic, and more controlled order flow inside the space they already have.

Martin Willmor, CEO of DHL Supply Chain UKI, said the Derby site would combine automation with operational scale to support customer growth. “This site will combine leading automation technology with DHL Supply Chain’s operational expertise to deliver speed, scalability and resilience for ecommerce fulfilment,” he said.

For George at Asda, the move creates a more concentrated fulfilment backbone for online clothing as the retailer pushes further into ecommerce-led growth. Chris Hall, vice president of logistics at Asda, said the partnership would give the business “the fast, scalable and resilient fulfilment operation we need as our ecommerce business grows.”

The Derby project also fits into DHL’s wider £550 million UK investment programme and is expected to create around 450 jobs. The company said the site would remain a shared-user operation, giving it scope to onboard additional customers alongside George as demand develops.

AutoStore’s inclusion is notable in its own right, with DHL describing Derby as its first UK deployment of the technology. The combination of goods-to-person automation and pocket sorting is well suited to fashion ecommerce, where wide product ranges, seasonal peaks, and rapid dispatch expectations place pressure on accuracy as much as throughput.

That is where the Derby site may carry broader significance. Shared-user ecommerce facilities are becoming more attractive as retailers look for scale without taking on the full cost of dedicated infrastructure. A highly automated operation can absorb peak demand more efficiently, support multiple fulfilment profiles, and make spare capacity commercially useful rather than idle. The pressure then moves from floor space to systems integration, returns handling, and transport orchestration — which is where the next competition in ecommerce logistics is likely to sit.