25th Feb 2015 13:02
LONDON (Alliance News) - Wm Morrison Supermarkets PLC Wednesday appointed former Tesco PLC executive David Potts as its new chief Executive, a tough role that will involve a push to turnaround the ailing grocer in the face of tough competition from German discounters Aldi and Lidl.
The move means that the entire top team at Morrisons is now made up of former Tesco executives. Potts is joining Chairman Andrew Higginson, Tesco's former chief financial officer, and Chief Financial Officer Trevor Strain, former Tesco UK property finance chief, at Morrisons.
Potts, aged 57, began his career with Tesco in 1973 as a shelf-stacker and rose to become its UK retail director and head of its Irish business before becoming head of its Asian business. He left Tesco at the end of 2011, only a few months after Richard Broadbent came in as chairman and former CEO Terry Leahy retired to be succeeded by Philip Clarke.
Since his departure from Tesco, Potts has been acting as a retail expert to several international advisory and private equity businesses.
"David is the best retailer I have worked with in 25 years in the industry. 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," Higginson said in a statement.
"Customers and Morrisons are a great combination to serve. This is a great British business with real potential and it is an honour to have been selected," Potts said.
He has a tough job ahead of him as Morrisons tries to stem the loss of customers to discounters Aldi and Lidl, and catch up with Tesco and J Sainsbury PLC in the convenience store and online grocery business.
Former Morrisons CEO Dalton Philips stepped down last week after five years at the helm, after the supermarket chain once again underperformed its major rivals in the sector over the key Christmas trading period.
"It was a judgement call based on trading momentum around the business. A business like this needs trading momentum to perform, and we think it is time to restore that... time for a fresh pair of eyes," Higginson had told journalists back in January when the company first announced Philips' departure.
Morrisons is hoping the new management team can get the supermarket chain back on track and restore growth in the business.
"David's skills are complementary to those of our excellent CFO, Trevor Strain, and I believe we have the makings of a good team," said Higginson in Wednesday's statement.
Morrisons shares were trading 1.2% higher Wednesday midday at 194.00 pence, one of the best performing stocks in the FTSE 100 on the day. However, the shares are still down 18.8% over the past 52 weeks and 35% over the past five years.
By Steve McGrath and Rowena Harris-Doughty; [email protected]; [email protected] @stevemcgrath1; @rharrisdoughty
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