Jones is one of the most highly respected retailers of his generation and credited with rescuing Next from the brink of collapse in the 1980s. His appointment marks a return to his home shopping roots - before joining Next he held senior roles at GUS, the British Mail Order Corporation and catalogue specialist Kays.
Littlewoods Shop Direct chief executive Mark Newton-Jones said: 'We are thrilled to have attracted a chairman of David's calibre and standing. Having been responsible for the team that turned around Next, arguably one of the most successful high street and home shopping retailers for the last two decades, his experience will be invaluable as we build the Littlewoods of the future.'
Jones, most recently deputy chairman of supermarket group Morrisons where he instigated improved corporate governance, said he was excited by the Littlewoods role.
He said: 'The group is at a pivotal stage - two years into a five-year turnaround that will transform the business into one of the UK's leading multichannel retailers. I look forward to playing a key role in a supporting Mark Newton-Jones and the board in achieving the group's ambitions.'
Littlewoods Shop Direct, owned by the Barclay brothers, generates annual sales of£1.8 billion.
Joes replaces David Simons, who retires at the end of May.