Asda has appointed former Morrisons executive David Potts as the next CEO, effective immediately.

The current CEO, Allan Leighton, is set to take on the role of non-executive group chairman as previously planned by the supermarket retailer.

As part of his new role as non-executive chairman, Allan Leighton will focus on the long-term strategic plan for the business.

Potts brings years of experience in senior leadership positions across major UK supermarket retailers to the role.

He began his career at Tesco, where he was eventually promoted to the CEO of the Ireland, UK and Asia business before joining Morrisons.

During his tenure as CEO of Morrisons, Potts oversaw a financial turnaround and business restructure before the transition to private ownership.

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David Potts, Group CEO said: “Asda has long been a great business, one I’ve admired and traded against over many years.

“The business has made good progress, but significant opportunities remain, and I’m delighted and very proud to have been asked by Allan to lead the team.

“Providing value to families across the UK has always been in Asda’s DNA, and by making improvements to the shopping trip every week, which customers can experience and feel in their pockets, we will revitalise the business and bring benefits for all our stakeholders, including our 116,296 very hard-working colleagues.”

This leadership change comes as the supermarket retailer continues to push towards a financial turnaround, recently reporting improved results in the seven weeks to 18 August.

Asda has returned to like-for-like sales growth for the first time in more than two years, and the new CEO will be responsible for continuing the recovery process at the supermarket retailer.