Asda hires ex-Morrisons boss David Potts to lead £25bn turnaround

Asda has appointed David Potts, the former chief executive of arch-rival Morrisons, as its new chief executive with immediate effect, according to the Mirror ^[1]. The Leeds-based supermarket, Britain’s third-largest chain, is attempting to reverse years of decline by handing the keys to an industry veteran who previously led one of its fiercest competitors.

Potts, 69, replaces Allan Leighton, who will revert to the role of non-executive chairman after running the business day-to-day since 2024, the Guardian reported ^[2]. Leighton had previously indicated that an internal candidate would likely fill the post, making the surprise appointment of Potts a notable shift in Asda’s leadership strategy as it enters the crucial Christmas trading period.

The move comes as Asda grapples with significant financial headwinds. The Daily Mail noted that the retailer suffered pre-tax losses that widened to £989m in 2025, with total sales falling 3.4 per cent to £25.9bn ^[3]. This comes against the backdrop of a debt-fuelled takeover by the Issa brothers and TDR Capital in 2021, which left the firm weighed down by financial pressures and disrupted by IT upgrades.

Potts begins his tenure at a pivotal moment, with market research indicating that Aldi is on the verge of overtaking Asda to become the UK’s third-largest supermarket, separated by only about one percentage point, according to the Guardian ^[2]. Potts said he was “delighted and very proud” to lead the team, stating that providing value to families is “in Asda’s DNA” and that the focus remains on keeping prices locked low for shoppers this Christmas.

Leighton said he was “really excited” to have appointed Potts, praising his “outstanding record” in the industry and stating that his experience was exactly what the business required for the next stage of its transformation. The Independent confirmed that Leighton’s step back was a planned move, allowing him to focus on the long-term strategic agenda while Potts handles operations ^[4].

Analysts remain cautious about the appointment. Jonathan de Mello of JDM Retail told the Daily Mail that Potts faces “one of the toughest turnaround jobs in modern British retail” and that his track record at Morrisons, where the chain lost its position to Lidl, does not necessarily inspire absolute confidence ^[3]. Critics argue that without a distinctive value-driven strategy rather than defensive cost-cutting, the appointment may not “move the needle” enough to counter the discounters.

Potts’ career began on the shop floor at Tesco aged 16, rising to lead its UK, Ireland, and Asia operations before taking charge of Morrisons from 2015 to 2023, during which time he oversaw its £10bn sale to private equity firm Clayton, Dubilier & Rice. With Christmas approaching, the new CEO has made it clear that his immediate priority is revitalising the shopping trip to ensure customers feel the benefit in their pockets.