Asda has appointed David Potts, the 69-year-old former chief executive of Morrisons, to lead the UK's third-largest supermarket chain with immediate effect. The move comes as the retailer grapples with declining sales and faces the prospect of being overtaken by rival Aldi. Executive chair Allan Leighton, 73, will transition to a non-executive strategic role, stepping back from day-to-day operations.
According to The Guardian, Leighton's shift away from executive leadership was a planned transition following his return to lead the company in 2024. The appointment of Potts represents a significant external hire after Leighton had previously signalled his preference for promoting an internal candidate to the chief executive position.
Potts began his retail career on the shop floor at Tesco at age 16 and spent decades with the UK's largest supermarket, eventually overseeing its domestic operations. He then moved to Morrisons, where he served as chief executive from 2015 until 2023, when the company was acquired by US investment firm Clayton, Dubilier & Rice in 2021. During his tenure at Morrisons, Potts led a turnaround by restoring the supermarket's fresh-food heritage and expanding its wholesale and convenience-store operations.
Why is Asda struggling?
Asda faces mounting pressure from intensifying competition and shifting consumer behaviour. The retailer's sales declined by 0.5% in the three months to 4 October, marking a reversal of modest growth achieved earlier in the year. More concerning, Asda's market share fell from 11.8% to 11.5% over the year to 4 October 2026, according to market research group Worldpanel by Numerator. Aldi is positioned to overtake Asda as the UK's third-largest supermarket, with approximately one percentage point separating the two chains in market share.
The supermarket chain was acquired by TDR Capital and the Issa brothers in 2020 during a period of falling sales and shrinking market share. Since then, the business has faced the challenge of stabilising operations and returning to growth amid broader retail headwinds affecting the sector.
What is Potts' track record?
Leighton expressed confidence in Potts' appointment, stating:
Over the last two years, we have stabilised the business and returned it to some growth and begun to establish Asda as 'more than a supermarket' through our Formula for Growth strategy. David has an outstanding record in our industry, his experience is exactly what we now require for the next stage of our transformation and beyond and it will be great to work with him.
Potts brings extensive experience in grocery retail transformation. His work at Morrisons demonstrated his ability to navigate challenging market conditions and implement strategic change. His appointment signals Asda's intention to pursue a more aggressive turnaround strategy focused on operational excellence and customer value.
What are Potts' priorities?
In his statement, Potts outlined his vision for the business:
Asda has long been a great business, one I've admired and traded against over many years. The colleagues are remarkable, some of the most passionate I've met. The business has made good progress but significant opportunities remain and I'm delighted and very proud to have been asked by Allan to lead the team.
He emphasised the importance of delivering tangible value to customers, saying:
Providing value to families across the UK has always been in Asda's DNA and by making improvements to the shopping trip every week, which customers can experience and feel in their pockets, we will revitalise the business and bring benefits for all our stakeholders, including our 116,296 very hard-working colleagues.
Potts identified the immediate seasonal challenge as a key focus area.
Christmas is upon us and the business has a clear focus on keeping Asda prices locked low at this important time for our customers. I'm excited to get started.This emphasis on competitive pricing reflects the broader retail environment, where households continue to seek value amid economic pressures.
What happens next?
Potts will begin implementing his strategy immediately, with an initial emphasis on maintaining competitive pricing during the critical Christmas trading period. His mandate extends beyond seasonal performance to encompassing the longer-term transformation of Asda's competitive position. The appointment marks a turning point for the retailer as it seeks to reverse recent sales declines and arrest further market share losses to discounters and competitors.
