Asda names former Morrisons boss David Potts as chief executive as sales struggle

Asda has appointed David Potts, the 69-year-old former boss of rival Morrisons, as its chief executive with immediate effect, as Britain's third-largest supermarket fights to turn around faltering sales.

The company said Allan Leighton, the 73-year-old executive chair who has run the business since 2024, will step back into a non-executive role focused on "the long-term strategic agenda for the business".

Potts began his career on the shop floor at Tesco at the age of 16 and spent decades at the UK's biggest supermarket, eventually leading its UK business. He went on to serve as chief executive of Morrisons from 2015 to 2023, leaving after the chain was taken private by the US investment house Clayton, Dubilier & Rice in 2021.

His arrival follows a lengthy search for a chief executive and marks a surprise choice, since Leighton had previously indicated he expected to hand the role to an internal candidate. Leighton said he was "really excited" to appoint Potts.

Leighton said the company had stabilised the business and returned it to some growth over the past two years under its Formula for Growth strategy, which aims to establish Asda as more than a supermarket. He added that Potts has "an outstanding record in our industry" and the experience needed for the next stage of the transformation and beyond.

Both Asda and Morrisons have been struggling in the face of intense competition and high levels of debt. Discounter Aldi is poised to overtake Asda as the UK's third-largest supermarket, with only about one percentage point separating the two chains.

Asda's sales fell 0.5% in the three months to 4 October, according to the latest figures from market research group Worldpanel by Numerator, despite the company's efforts to trim prices and improve its ranges and the availability of stock.

Potts said Asda had long been a great business that he had "admired and traded against over many years", describing its staff as remarkable. "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," he said.

He pledged to revitalise the chain by improving the weekly shopping trip in ways customers "can experience and feel in their pockets", promising benefits for all stakeholders, including what he described as Asda's 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," Potts said. "I'm excited to get started."