David Potts: Asda appoints former Morrisons boss as its new chief executive

Former Morrisons chief David Potts has been hired by Asda as its new chief executive as the supermarket chain wants his help with revival efforts.

According to the group, Potts will take on the role with immediate effect as current chief Allan Leighton steps down to non-executive chairman, two years after he returned to Asda.

Morrisons was led by Potts for eight years from 2015-2023. He led a major turnaround a the group during a time it was bought out by private equity firm Clayton, Dubilier & Rice (CD&R).

TDR has been the majority owner of Asda since 2024 following the buyout, as its debt burden has largely hindered turnaround efforts.

The supermarket chain’s struggles were compounded recently by a failed IT overhaul related to its separation from former owner, Walmart.

Like-for-like sales - excluding fuel - fell 2.3% in its fiscal second quarter, marking nine consecutive periods of decline.

Its current market share, according to Worldpanel by Numerator, stands at 11.5%, down from 14.3% at the start of 2021.

According to the group, Leighton’s move to non-executive chairman was a planned manoeuvre after he came back to Asda in 2024 to take the helm more than 20 years after he first served as Chief Executive.

He joined as Asda – bought by private equity firm TDR Capital and the billionaire Issa brothers in 2020 – battled to turn around sliding sales and a shrinking market share.

Mr Leighton said: “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.”

Mr Potts said the firm has “made good progress but significant opportunities remain” to reinvigorate sales, with a focus on keeping prices low for shoppers.

He added: “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.”