LONDON, Nov 3 (Reuters) - British supermarket group Asda has turned to former Morrisons boss David Potts to revive its fortunes, appointing the veteran retailer chief executive with immediate effect on Tuesday.

Allan Leighton, Asda's executive chairman since November 2024, will become non-executive chairman, the group said.

Potts began his career with Tesco on the shop floor aged 16, climbing the ranks to lead its Ireland business, its UK business, and its Asia business. He was CEO of Morrisons for eight years until 2023.

Asda, majority owned by private equity firm TDR Capital, is Britain's third largest supermarket group, trailing market leader Tesco and Sainsbury's.

While Asda has lost market share to rivals in recent years, it returned to underlying sales growth for the first time in more than two years in its third quarter, crediting sharper pricing, improved availability and a better overall shopping experience.

Leighton had warned in 2024 it could take up to five years to turn the group around.

"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," said Potts.

(Reporting by James Davey, editing by Sam Tabahriti and Sarah Young)

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