By Karim Hammam
Asda has appointed David Potts, the former chief executive of Morrisons, as its new chief executive with immediate effect as the UK's third-largest supermarket chain continues to grapple with declining sales and intense competition.
Leadership Change Amid Sales Pressure
The 69-year-old Potts takes over from Allan Leighton, 73, who has served as executive chair since 2024 and will now move to a non-executive strategic role. The appointment follows a lengthy search for a permanent chief executive and comes as a surprise after Leighton previously signaled he expected to promote an internal candidate.
Market Challenges
Asda faces mounting pressure from discounter Aldi, which is poised to overtake it as Britain's third-largest supermarket, with only about one percentage point separating them. According to Worldpanel by Numerator, Asda's sales fell 0.5% in the three months to October 4, despite efforts to cut prices and improve product ranges and stock availability. The retailer also carries high levels of debt.
Retail Veteran
Potts began his career on the shop floor at Tesco at age 16 and spent decades at the UK's largest supermarket, eventually leading its UK business. He served as Morrisons chief executive from 2015 to 2023, departing after the chain was taken private by US investment firm Clayton, Dubilier & Rice in 2021.
Transformation Focus
Leighton said the business had been stabilized and returned to growth over the past two years through its "Formula for Growth" strategy, adding that Potts' experience was exactly what Asda needed for its next transformation phase. Potts said he was proud to lead the team of 116,296 colleagues and emphasized a focus on keeping prices low for families, particularly ahead of Christmas.
