Key Takeaways
- • Asda has appointed David Potts, former Morrisons chief executive who oversaw the 2021 sale of Morrisons to private equity group Clayton Dubilier & Rice for £10bn, as chief executive with immediate effect, according to This is Money.
- • Allan Leighton, who has run Asda for the past two years, moves into a non-executive chairman role after rejoining the Leeds-based grocer in November 2024.
- • Asda's pre-tax losses widened from £599million in 2024 to £989million in 2025, while total sales fell 3.4% to £25.9billion.
- • Analysts questioned whether the appointment would 'move the needle' for the business, which has lost ground to Lidl and Aldi following the debt-fuelled £6.8billion takeover by the Issa brothers, backed by TDR Capital, in 2021.
- • Leighton said the group had 'stabilised' after reporting quarterly sales growth for the first time in more than two years last month.
Summary
Asda has hired David Potts as chief executive with immediate effect, ending a lengthy search for a new leader, according to This is Money. Potts previously led Morrisons from 2015 to 2023, a period that included the group's £10bn sale to private equity firm Clayton Dubilier & Rice in 2021. He began his career at Tesco on the shop floor at age 16, later running its Ireland, UK and Asia businesses, and sat on Tesco's board from 1998 to 2012. Potts said Asda 'has long been a great business' and that it 'has made good progress but significant opportunities remain.'
The appointment marks a handover from Allan Leighton, a retail veteran and former Asda boss who has led the business for the past two years and will now become non-executive chairman. Leighton told the company that Asda had 'stabilised' under his leadership, noting quarterly sales growth last month for the first time in more than two years. Earlier this year he said the business was 'about a third' of the way through its recovery, which has included price cuts and upgrades to its online operations. He has cautioned that the revival will not be an overnight fix and that price cuts will weigh on profits, and pointed to price pressure linked to the heatwave affecting crops this summer.
Asda's financial position remains weak. Company accounts show pre-tax losses widening from £599million in 2024 to £989million in 2025, while total sales fell 3.4% to £25.9billion. The grocer, Britain's third largest, has lost share to discounters Lidl and Aldi, and has struggled with debt pressures and severe disruption linked to an IT upgrade since the 2021 takeover by the Issa brothers, which TDR Capital helped finance.
Analysts were cautious. Jonathan de Mello, founder and CEO of retail consultancy JDM Retail, said Potts faces 'one of the toughest turnaround jobs in modern British retail' and that his Morrisons track record 'doesn't necessarily inspire absolute confidence.' He argued both supermarkets have lacked a distinctive offer and the ability to undercut discounters on price, and said Potts would need to invest in a value-driven strategy rather than rely on defensive cost-cutting to move the business forward.
The appointment marks a handover from Allan Leighton, a retail veteran and former Asda boss who has led the business for the past two years and will now become non-executive chairman. Leighton told the company that Asda had 'stabilised' under his leadership, noting quarterly sales growth last month for the first time in more than two years. Earlier this year he said the business was 'about a third' of the way through its recovery, which has included price cuts and upgrades to its online operations. He has cautioned that the revival will not be an overnight fix and that price cuts will weigh on profits, and pointed to price pressure linked to the heatwave affecting crops this summer.
Asda's financial position remains weak. Company accounts show pre-tax losses widening from £599million in 2024 to £989million in 2025, while total sales fell 3.4% to £25.9billion. The grocer, Britain's third largest, has lost share to discounters Lidl and Aldi, and has struggled with debt pressures and severe disruption linked to an IT upgrade since the 2021 takeover by the Issa brothers, which TDR Capital helped finance.
Analysts were cautious. Jonathan de Mello, founder and CEO of retail consultancy JDM Retail, said Potts faces 'one of the toughest turnaround jobs in modern British retail' and that his Morrisons track record 'doesn't necessarily inspire absolute confidence.' He argued both supermarkets have lacked a distinctive offer and the ability to undercut discounters on price, and said Potts would need to invest in a value-driven strategy rather than rely on defensive cost-cutting to move the business forward.
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