Asda has appointed David Potts CBE, formerly chief executive of Morrisons, as group chief executive with immediate effect, it announced on 3 November. Allan Leighton, who has led the supermarket chain, moves to non-executive group chairman, as previously planned by the retailer.
Mr Potts began his career on the Tesco shop floor aged 16 and rose to lead its UK, Ireland and Asia operations, according to Retail Gazette. He became chief executive of Morrisons in 2015, where he oversaw a turnaround, expanded its wholesale and convenience operations and guided its move to private ownership before leaving in 2023. Asda says it employs 116,296 colleagues.
The handover and the strategy
The change takes effect at once, and Mr Leighton’s move to the chairmanship had already been planned. As non-executive chairman, Mr Leighton will focus on Asda’s long-term strategic direction. Retail Gazette quotes him saying the Formula for Growth strategy had stabilised the business, returned it to growth and established its position as more than a supermarket over the past two years. Grocery Gazette reports that Asda recently posted improved results for the seven weeks to 18 August and had returned to like-for-like sales growth for the first time in more than two years.
Mr Leighton said Mr Potts has an outstanding record in the industry and that his experience is what Asda requires for the next stage of its transformation. Mr Potts said he had long admired Asda and traded against it for many years, and called its colleagues remarkable and among the most passionate he has met.
Priorities named by the new chief executive
Mr Potts said improving the shopping trip and delivering value would be central to his plans, and that the immediate priority was keeping prices low through the Christmas trading period. Neither report gives a pay package, a revised strategy or a change to the Formula for Growth plan.
Grocery Gazette says the new chief executive will be responsible for continuing the recovery at a supermarket pushing towards a financial turnaround, while Retail Gazette says Asda is looking to build on the Formula for Growth strategy.
What the announcement does not say
The reports do not say why the change was made now beyond the planned move of Mr Leighton to chairman, and they give no targets for Mr Potts. The announcement is also silent on convenience, wholesale or franchise plans at Asda.
Asda and in-store restaurant partners
The appointment came on the same day Subway announced an extension of its partnership with Asda, with up to 70 more restaurants in the supermarket’s stores over four years, according to Grocery Gazette. Subway says the extension would raise its presence across Asda’s estate by more than 50%, building on more than 120 restaurants already inside Asda supermarkets. No report links the two announcements. Morrisons, which Mr Potts led until 2023, features in L’Express Franchise’s report on Morrisons Daily franchise sites, and wider grocery trading context is in the report on Lidl GB turnover.
