Asda has appointed David Potts, the former chief executive of Morrisons, as its new CEO with immediate effect, as the supermarket chain continues to struggle to lift sales amid heavy competition and high debt levels.
Potts, 69, succeeds Allan Leighton, 73, who has been running the business since 2024 and will now step back to a non-executive role focusing on Asda's long-term strategic agenda. Leighton had indicated he expected to fill the role with an internal candidate.
Asda, the UK's third-largest supermarket, Potts 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. He was chief executive of Morrisons between 2015 and 2023, leaving after the supermarket group was taken private by US investment house Clayton, Dubilier & Rice in 2021.
Aldi is poised to overtake it as 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 market research group Worldpanel by Numerator, despite efforts to trim prices and improve ranges and stock availability.
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."
He added: "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."
Analysis
Why This Matters
- Asda's sales are falling and it risks being overtaken by Aldi as the UK's third-largest supermarket, directly affecting prices and choice for millions of shoppers
- The appointment brings in a seasoned supermarket veteran but signals the board could not find an internal successor, raising questions about the chain's leadership pipeline
- Asda and Morrisons both face heavy competition and high debt levels, making the sector's restructuring a bellwether for the UK grocery market
Background
Asda is the UK's third-largest supermarket chain. It has been owned by the Issa brothers and TDR Capital since 2021, when they bought it from Walmart in a leveraged buyout. The chain has struggled with debt and competition from discounters Aldi and Lidl. Allan Leighton, a former Asda CEO and co-founder of the discounter Poundstretcher, returned as executive chair in 2024 to stabilise the business.
Key Perspectives
Allan Leighton (executive chair, Asda): said he was "really excited" to appoint Potts, describing his record as "outstanding" and his experience "exactly what we now require for the next stage of our transformation".
David Potts (incoming chief executive): said Asda "has made good progress but significant opportunities remain", and he aims to revitalise the business by improving the shopping trip and delivering value.
What to Watch
- Whether Asda's sales stabilise in the next quarterly market-share data from Worldpanel or Kantar
- How Aldi's market share trends relative to Asda's over the coming months
- Any further management changes or strategic shifts Potts may announce
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedAsda appointed former Morrisons chief executive David Potts as its chief executive.Business | The Guardian: “Asda has appointed David Potts, the 69-year-old former boss of Morrisons, as its chief executive with immediate effect”
- SupportedPotts is 69 and took up the role with immediate effect.Business | The Guardian: “the 69-year-old former boss of Morrisons, as its chief executive with immediate effect”
- SupportedAsda is the UK's third-largest supermarket.Business | The Guardian: “The UK’s third largest supermarket said its 73-year-old executive chair, Allan Leighton”
- SupportedAsda is struggling to lift sales amid heavy competition and high debt levels.Business | The Guardian: “Asda and Morrisons are struggling as they face heavy competition and high levels of debt.”
- SupportedAllan Leighton, 73, had been running Asda since 2024 and will step back to a non-executive role focused on its long-term strategic agenda.Business | The Guardian: “its 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””
- SupportedLeighton had indicated he expected to fill the role with an internal candidate.Business | The Guardian: “Leighton had indicated he expected to fill the role with an internal candidate.”
- SupportedPotts began his career at Tesco aged 16, worked there for decades and eventually headed its UK business.Business | The Guardian: “Potts 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.”
- SupportedPotts was Morrisons chief executive from 2015 to 2023 and left after the group was taken private in 2021.Business | The Guardian: “He was then chief executive of Morrisons between 2015 and 2023, leaving after the supermarket group was taken private by the US investment house Clayton, Dubilier & Rice in 2021.”
- SupportedAldi is poised to overtake Asda as the UK's third-largest supermarket, with about one percentage point separating them.Business | The Guardian: “Aldi is poised to overtake Asda to become the UK’s third largest supermarket, with about one percentage point separating them.”
- SupportedAsda's sales fell 0.5% in the three months to 4 October, according to Worldpanel by Numerator.Business | The Guardian: “Asda’s sales fell by 0.5% in the three months to 4 October, according to the latest figures from the market research group Worldpanel by Numerator”
- SupportedLeighton said he was “really excited” to appoint Potts.Business | The Guardian: “Leighton said he was “really excited” to appoint Potts.”
- SupportedPotts said Asda had made good progress, that significant opportunities remained, and that he was proud to have been asked by Allan to lead the team.Business | The Guardian: “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.”