Morrisons, the UK’s fourth largest supermarket chain, has named former Tesco director David Potts as its new chief executive.
Potts began working at Tesco when he was just 16 years old and climbed his way up to become the retail director of Tesco in the UK.
He will begin working as Morrisons’ new boss on 16 March and receive a salary of 850,000 pounds a year.
Potts will be replacing Dalton Philips, who said last month that he would be leaving the supermarket chain after serving as its chief executive for five years.
Morrisons chairman Andrew Higginson worked alongside Potts for 15 years when he was finance director at Tesco.
“David is the best retailer I have worked with in 25 years in the industry,” said Higginson.
“Having worked alongside him for 15 years, I know he will bring to Morrisons a focus on the customer, a track record of delivery, flair, talent, and immense energy to his new role.”
Morrisons needs to return to growth
Morrisons has experienced nearly two years of declining quarterly same-store sales.
Last month it posted a 3.1% decline in like-for-like sales (excl. fuel) in the six weeks to January 4th, prompting its board to decide it needed a new leader.
Chairman-elect, Andrew Higginson, said at the time:
“We need to return the business to growth. The board believes this is best done under new leadership.”
Mr. Philips said:
“Morrisons is a great company with exceptionally talented people and I have been very proud to have worked with them. Over the last five years, we have made many improvements to the business and given Morrisons strong foundations for the future. I wish every success to the company and all of my colleagues, who have, and continue to work so hard.”
Mr Potts will be handed the difficult task of returning the company to growth. He said it “was an honour to have been selected”.