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Ex-Tesco director David Potts named as new Morrisons chief executive

Published:  25 February, 2015

Morrisons has named former Tesco director, David Potts, as its new chief executive following weeks of speculation of who would succeed Dalton Phillips who announced he was stepping down in January.

David Potts Morrisons CEOMorrisons CEO David Potts

Morrisons has named former Tesco director, David Potts, as its new chief executive following weeks of speculation of who would succeed Dalton Phillips who announced he was stepping down in January.

Phillips was due to leave the chain in March, but left the business earlier than expected saying the end of the financial year was an "appropriate time to relinquish his responsibilities". Potts arrival means there will be now three former Tesco directors running operations at Morrisons.

Chief financial officer Trevor Strain, a former Tesco man, had taken on the role on the until a replacement was found, aided by new chairman Andrew Higginson, also ex-Tesco, who joined the company in October.

Potts spent nearly 40 at rival Tesco, working his way from shelf-stacker to heading up the company's Asian business. He left the business in December 2011.

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Analyst Clive Black of Shore Capital said Potts' appointment was no surprise, and he was a highly experienced and effective retail operator. Black said he would bring focus and pace to Morrisons, and his experience of working alongside Higginson and Strain at Tesco would be very important.

He said the supermarket's current strategy was unlikely to see material change, but operational adjustments were likely, including the "wholesale evolution" of the non-executive team that he said had "overseen some dreadful decision-making".

"The insights and emphasis that a very fit and sharp eyed Mr. Potts will bring should create a firmer basis for an improvement in sales at the company, and we know that the market is particularly sensitive to sales momentum in retail at this time," he said.

Kate Latham, managing director, retail, leisure and consumer at executive search firm, Norman Broadbent, said: "Morrisons has been struggling with the structural changes in grocery retailing for a number of years. David Potts, who was considered an inspirational leader at Tesco, known and respected by every store manager, will bring a wealth of experience to the table. David was also on the Tesco board when its market value tripled and helped move the business internationally and online.

"David has a strong track record of investing, nurturing and promoting talent. At a time when Morrisons' employees may be feeling a little unsure, David will motivate and galvanise a large group of people and in turn earn their trust."

Morrisons saw like-for-like sales fall 3.1% in the key Christmas trading period to January 4, the worst performing of the big four supermarkets.

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