Morrisons boss David Potts to step down one year after supermarket’s £7.1bn takeover
THE boss of Morrisons is to leave a year after a £7.1billion takeover — ending his five-decade retail career that began on a Tesco deli counter at 16.
Supermarket chief David Potts, 66, has been hailed as “one of the greats of retail”.
He saved the Bradford-based grocer from freefall nine years ago, and was also credited for adopting a a Churchillian approach to feeding the nation during the pandemic.
But the last couple of years have been tougher following the takeover by private equity firm Clayton Dubilier & Rice.
The ownership change and expensive debt has made it harder for the supermarket to cut prices.
Last year, it lost its status as the UK’s fourth biggest grocer to Aldi.
It has worked to correct sliding sales — as figures yesterday showed total sales had risen by 3.1 per cent to £3.8billion.
Mr Potts, who leaves in November, told The Sun: “Last year wasn’t where we should have been — we maybe over-stoked the business in Covid, which made it hard to keep up that pace.
“But it’s how you get up, not how you get knocked down, and we’re back on track.”
He will be replaced by Rami Baitiéh, who is leaving French supermarket chain Carrefour after missing out on the top job there.
Questions remain as to whether Mr Baitiéh will prioritise protecting the grocer’s “vertical” model of owning food factories, farms and fisheries.
But Mr Potts said he would remain available to his successor, saying: “He’s new to the business and to the UK, so if he needs to know anything — like, ‘Where is Skipton?’ — I can tell him.”
Clive Black, analyst at Shore Capital, said: “Mr Potts was a guiding light for Morrisons. He saved it, frankly.”
Mr Potts, who earned more than £27million in his time at Morrisons, said he plans to spend more time with his granddaughter then “look for further ways to contribute to business”.
CHAIN'S HISTORY
DAVID Potts has enjoyed a long career in retail.
1973: Begins a job on deli counter at Tesco, Ashton-under-Lyne.
1981: Becomes a Tesco store manager.
1997: Becomes Tesco Ireland chief executive.
1998: On Tesco board.
2011: Leaves Tesco.
2015: Joins Morrisons.
Morrisons also boasts an extensive history.
1899: William Morrison opens a stall in Bradford.
1961: First supermarket opens in Bradford.
2001: Joins FTSE 100.
2004: Buys Safeway.
2015: Dalton Philips sacked as chief executive.
2021: Taken over for £7billion by CD&R.
NEAME’S IN LIGHTS
BRITAIN’S oldest brewer has toasted the return of the after-work pint as pricier drinks have driven sales higher.
Shepherd Neame, maker of Spitfire and Whitstable Bay beers and owner of 269 pubs, said drink sales had risen by 22 per cent over the year to June.
However, the business revealed that while recent sales were rising by 5.6 per cent, its own beer sales volumes had slumped by 15.9 per cent — meaning drinkers were paying more for fewer pints.
CEO Jonathan Neame credited more people working four days a week in the office to a rise in after-hours boozing, adding: “Demand has been strong all year.”
HOME SALES LIFT
THE housing market is starting to pick up again with a 12 per cent rise in buyers making enquiries to estate agents.
Figures from Zoopla show the slump in demand is starting to reverse.
Experts say mortgage rates are on track to fall below 5 per cent after the Bank of England halted a series of interest rate rises at 5.25 per cent last week.
House prices have fallen by 0.5 per cent over the past 12 months and are expected to slip as much as 3 per cent.
They are still 17 per cent above pre-pandemic levels.
PEN IS MIGHTIER
CAR dealership Pendragon has given its three-way takeover battle some extra juice with a rise in profits.
Shares rose 10 per cent to 32.9p yesterday after reporting a 10 per cent rise in first-half profits to £36.4million.
US-based Autonation made a £447million offer on Tuesday, beating a rival offer from Pendragon’s biggest shareholder Hedin Mobility.
Pendragon had earlier agreed a £280million deal to sell its UK showrooms to US dealership LithiaI and keep its software business.
HEAT HITS H&M SALE OF COATS
THE early September heatwave has made it a struggle to shift autumn coats and jumpers, H&M admitted yesterday.
The world’s second biggest fashion retailer said it expected sales to slump by 10 per cent this month.
Boss Helena Helmersson said “heavy autumn product” sales were being delayed as shoppers were reluctant to buy warm clothes while the sun was still shining.
The weather warning comes despite fashion rival Zara’s owner Inditex saying its sales had risen by 14 per cent over the past month.
Analysts said it was further evidence that Zara was tapping into customer trends with far greater success.
Nevertheless, H&M’s shares lifted slightly yesterday after the retailer said profit margins were improving as a result of a cost-cutting programme.
Ms Helmersson added H&M was focused on “customer focus and inventory efficiency”
SAGA IS CRUISING
OVER-50s specialist Saga has said its cruise travel business will return to profit this year.
It said its overall sales had grown by 15 per cent to £355.3million over the past six months as its booming travel section offset troubles in its motor insurance arm.
That is suffering from the rising costs of vehicle repairs and claims.
It has also shelved the planned disposal of its underwriting arm until market conditions improve.