ASDA/Matalan - comment
ASDA outsourcing deliveries of George (its clothing brand) is an indication of how deep the Leighton restructuring plans are going. ASDA believes that DHL can handle the deliveries better and more cheaply, and after the issues with internal logistics in Q3, it’s one less headache for management. Matalan (a close comp) has worked with GXO logistics since October 2024 for deliveries from its stores. George’s decision to follow Matalan in contracting out delivery suggests the Matalan deal is working well.