Wal-Mart Stores Inc. is sending its strongest signal yet that it no longer intends to do business as usual, placing its advertising account in review.
Word of the review, Wal-Mart's first in more than 30 years, comes after months of significant changes to the retailer's longtime marketing approaches. The move underscores Wal-Mart's eagerness to find ways to broaden its appeal to new upscale shoppers as the chain's revenue growth has lagged its smaller and hipper rival, Target Corp.
Given the size of Wal-Mart's marketing budget, $578 million last year, the move is likely to set off a scramble among agencies. But finding new agencies could prove tricky because shops with retail backgrounds may already work for competitors.
The review puts a spotlight on the two agencies on which Wal-Mart has relied for many years, Bernstein-Rein Advertising in Kansas City, Mo., and GSD&M in Austin, Texas, owned by the Omnicom Group.
Both agencies, which helped Wal-Mart during its many years of drastic growth by marketing its low-cost image, said they would take part in the review.
Wal-Mart is hoping new ad campaigns will help it reach higher-income customers who will stay in the stores to buy more than just staples. The discount retailer is also pushing into urban markets and wants to attract sophisticated city shoppers.
The company has introduced more stylish merchandise under brand names like Exsto and Metro 7, added more expensive television sets to the consumer electronics departments, and spruced up the interiors of its stores.
Wal-Mart's chief marketing officer, John Fleming, has been searching for a distinct, unified voice for the company's advertising since he was promoted to his post in March 2005 after leading the Wal-Mart online division.
Under Fleming, the smiley-faced character that has symbolized Wal-Mart's commitment to low prices, which was created by Bernstein-Rein, has virtually disappeared from mainstream ads. He has also played down campaigns that were centered on actual Wal-Mart customers and employees talking about low prices, convenience and how much fun it is to shop at Wal-Mart.
Wal-Mart is looking for an agency or agencies that can provide "great creativity and an understanding of the customer," said Gail Lavielle, a spokeswoman for Wal-Mart in Bentonville, Ark. She confirmed a report of the review that appeared Wednesday on the Web site of the trade publication Advertising Age.
