Asda has appointed David Potts, the former chief executive of rival Morrisons, as its new chief executive to lead a turnaround for the UK's third-largest supermarket. Potts takes the role with immediate effect, succeeding Allan Leighton, who transitions to non-executive chair after nearly two years in the top role. Leighton praised Potts' experience, stating it is "exactly what we now require for the next stage of our transformation" following Asda's stabilization.
The supermarket, purchased in a £6.8 billion deal by TDR Capital and the Issa brothers in 2020, has faced falling sales and widening losses, ceding market share to Tesco, Sainsbury's, Aldi, and Lidl. The company also carries a heavy debt burden from its leveraged buyout. Potts, who began his career at Tesco and rose to lead Morrisons, oversaw a turnaround and the £10 billion takeover by Clayton Dubilier & Rice in 2021.
Since returning as executive chair in November 2024, Leighton has focused on restoring value credentials through price cuts and improved availability. There have been tentative signs of recovery, with like-for-like sales excluding fuel rising 0.2 per cent in the seven weeks to August 18, the first growth in over two years. However, sales fell 0.5 per cent in the 12 weeks to October 4, and market share slipped to 11.5 per cent from 11.8 per cent year-on-year.
Potts takes the helm as Asda searches for stability after Roger Burnley's departure in 2021 and Mohsin Issa's nine-month tenure.
Source: Financial Times Companies · Summarized by HeadlinesBriefing