By Islam El-Sakka
Asda has appointed former Morrisons chief executive David Potts as its new chief executive with immediate effect, as the supermarket chain seeks to revive its fortunes. Current chief Allan Leighton will step down to a non-executive chairman role after two years at the helm.
Leadership Transition
Leighton’s move to non-executive chairman was described as a planned manoeuvre following his return to Asda in 2024, more than 20 years after he first served as chief executive. He joined as the retailer – owned by private equity firm TDR Capital and the Issa brothers since 2020 – battled sliding sales and a shrinking market share.
Potts' Track Record
Potts led Morrisons for eight years from 2015 to 2023, overseeing a major turnaround during its buyout by private equity firm Clayton, Dubilier & Rice. TDR Capital has been the majority owner of Asda since 2024.
Asda's Challenges
The supermarket’s struggles have been compounded by a failed IT overhaul related to its separation from former owner Walmart. Like-for-like sales excluding fuel fell 2.3% in the fiscal second quarter, marking nine consecutive periods of decline. Market share stands at 11.5%, down from 14.3% at the start of 2021, according to Worldpanel by Numerator.
Outlook
Leighton said the business had been stabilised and returned to growth, while Potts acknowledged significant opportunities remain to reinvigorate sales with a focus on keeping prices low. Potts emphasized improvements to the weekly shopping trip to revitalise the business for its 116,296 colleagues, especially ahead of Christmas.
