Asda appoints former Morrisons boss as chief executive as sales struggle

Asda has appointed the 69-year-old former boss of Morrisons, David Potts, as chief executive with immediate effect as it continues to struggle to lift sales. The UK’s third largest supermarket said that 73-year-old executive chair Allan Leighton, who has been running the business since 2024, would now step back to a non-executive role focusing on “the long-term strategic agenda for the business”. Potts, who began his career on the shop floor at Tesco aged 16 and worked at the UK’s biggest supermarket for decades eventually heading its UK business, went on to become chief executive of Morrisons between 2015 and 2023. He left after the supermarket group was taken private by US investment house Clayton, Dubilier & Rice in 2021. Asda and Morrisons are struggling as they face heavy competition and high levels of debt. Aldi is poised to overtake Asda to become the UK’s third-largest supermarket, with about one percentage point separating them. Asda’s sales fell by 0.5% in the three months to 4 October according to the latest figures from market research group Worldpanel by Numerator despite its efforts to trim prices and improve its ranges and availability of stock. The appointment of Potts comes after a long search for a chief executive by Asda but is a surprise move as Leighton had indicated he expected to fill the role with an internal candidate. Leighton said he was “really excited” to appoint Potts. “Over the last two years, we have stabilised the business and returned it to some growth and begun to establish Asda as ‘more than a supermarket’ through our Formula for Growth strategy. David has an outstanding record in our industry, his experience is exactly what we now require for the next stage of our transformation and beyond and it will be great to work with him,” Leighton said. Potts said: “Asda has long been a great business, one I’ve admired and traded against over many years. The colleagues are remarkable, some of the most passionate I’ve met. The business has made good progress but significant opportunities remain and I’m delighted and very proud to have been asked by Allan to lead the team. “Providing value to families across the UK has always been in Asda’s DNA and by making improvements to the shopping trip every week, which customers can experience and feel in their pockets, we will revitalise the business and bring benefits for all our stakeholders, including our 116,296 very hard-working colleagues. “Christmas is upon us and the business has a clear focus on keeping Asda prices locked low at this important time for our customers. I’m excited to get started.”