Morrisons has announced the appointment of a new chief executive.
Former Tesco director David Potts will take up the position after working at the rival supermarket since the age of 16. Mr Potts rose through the Tesco ranks to become retail director in the UK and the chief executive of its Irish operations. He will take over at Morrisons from March 16th following the departure of Dalton Philips.
The current chief executive announced in January that he would be exiting the supermarket after a five-year tenure. Mr Potts faces a tough challenge to turn around Morrisons' fortunes which has been significantly underperforming in recent months. It has faced criticism for its slow uptake in convenience stores and its online presence.
However, the company is confident that Mr Potts can steer the company into the right direction.
Andrew Higginson, chairman of Morrisons, said: "I am delighted to welcome David as our new chief executive. 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. He will lead our colleagues in the business from the front, and with distinction."
The traditional 'big four' supermarkets are facing increased pressure from discounters such as Aldi and Lidl. The German companies have been gaining market share and higher sales as consumers opt for low-cost, good quality products. While Morrisons has been criticised for failing to act quickly on online grocery shopping and convenience stores, others have also been falling behind.
Asda and Tesco have recently announced that they would be scaling back expansion plans with the latter stopping production of a number of new stores as well as closing underperforming outlets.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.