Wal-Mart has reportedly severing ties with its longtime ad agency as the retailers thinks that the agency has not been effective to project the new image of Wal-Mart as a trend purveyor and a low-price operator. According to reports, Wal-Mart has already informed Omnicom Group Inc.’s GSD&M in Austin, Texas that it would be no longer needed for service after January 31, next year. The incumbent agency has been working with Wal-Mart since 20 years.
However, a major shuffle in the creative account of the retailer giant was always on the cards as it has already put another longtime agency, Bernstein-Rein Advertising Inc., based in Kansas City, on notice to be out of panel after January 2007.
The retailer giant is yet to announce this development officially. However, few reports suggest that the company is likely to hand over its creative account to Draft FCG, a division of Interpublic Group and Aegis Group’s Carat USA. However these developments are actually not shocking as the company has already been indicating that it is likely to review its half a billion ad strategy.
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