Key Takeaways
- • Asda has appointed David Potts as chief executive with immediate effect, ending a long search for a permanent leader of Britain's third-largest grocer.
- • Potts previously led Morrisons from 2015 to 2023, a period that included the group's £10billion sale to private equity firm Clayton Dubilier & Rice in 2021.
- • Allan Leighton, who has run Asda for the past two years, moves into a non-executive chairman role after reporting the first quarterly sales growth in more than two years last month.
- • Asda's pre-tax losses widened from £599million in 2024 to £989million in 2025, while total sales fell 3.4% to £25.9billion.
- • Analysts are divided: JDM Retail's Jonathan de Mello questions whether Potts can address structural pricing weakness, while Shore Capital's Clive Black calls the appointment 'very strongly positive'.
Summary
Asda has hired David Potts as chief executive, bringing in the former Morrisons boss who oversaw the sale of that supermarket to private equity, according to the report. The company said Potts joined with immediate effect after a long search for a new chief executive. He began his career at Tesco at age 16, later running its Ireland, UK and Asia businesses, and sat on the Tesco board from 1998 to 2012. He led Morrisons from 2015 to 2023, including the £10billion sale to Clayton Dubilier & Rice in 2021. Morrisons has since struggled with debt from the takeover and has lost its position as Britain's fifth-largest grocer to Lidl.
Asda has been run for the past two years by Allan Leighton, who rejoined the Leeds-based retailer in November 2024 and will now become non-executive chairman. Leighton said the group had 'stabilised' under his leadership, following last month's quarterly sales growth. Earlier this year he described the recovery as 'about a third' complete, citing price cuts and upgrades to online operations. He has warned that the revival will not be an overnight fix and that price cuts will weigh on profits. Asda has lost ground to discounters Lidl and Aldi and has faced debt pressures and severe disruption linked to an IT upgrade.
Asda's annual accounts show pre-tax losses widened from £599million in 2024 to £989million in 2025, while total sales fell 3.4% to £25.9billion. Leighton also cited price pressure from crop-damaging heat this summer.
Jonathan de Mello, founder and CEO of JDM Retail, said Potts 'faces one of the toughest turnaround jobs in modern British retail at Asda', but that his Morrisons record 'doesn't necessarily inspire absolute confidence'. He argued that both supermarkets lack a distinctive offer and cannot undercut discounters on price, and said Potts must invest in a value-driven strategy rather than rely on defensive cost-cutting. Clive Black of Shore Capital took a more positive view, calling the appointment 'very strongly positive' and describing Potts as one of the greatest grocers in Britain. Black said he expects Potts to 'smarten up and sharpen up' the business without imposing a Morrisons or Tesco model.
Asda has been run for the past two years by Allan Leighton, who rejoined the Leeds-based retailer in November 2024 and will now become non-executive chairman. Leighton said the group had 'stabilised' under his leadership, following last month's quarterly sales growth. Earlier this year he described the recovery as 'about a third' complete, citing price cuts and upgrades to online operations. He has warned that the revival will not be an overnight fix and that price cuts will weigh on profits. Asda has lost ground to discounters Lidl and Aldi and has faced debt pressures and severe disruption linked to an IT upgrade.
Asda's annual accounts show pre-tax losses widened from £599million in 2024 to £989million in 2025, while total sales fell 3.4% to £25.9billion. Leighton also cited price pressure from crop-damaging heat this summer.
Jonathan de Mello, founder and CEO of JDM Retail, said Potts 'faces one of the toughest turnaround jobs in modern British retail at Asda', but that his Morrisons record 'doesn't necessarily inspire absolute confidence'. He argued that both supermarkets lack a distinctive offer and cannot undercut discounters on price, and said Potts must invest in a value-driven strategy rather than rely on defensive cost-cutting. Clive Black of Shore Capital took a more positive view, calling the appointment 'very strongly positive' and describing Potts as one of the greatest grocers in Britain. Black said he expects Potts to 'smarten up and sharpen up' the business without imposing a Morrisons or Tesco model.
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