Asda-owner Walmart strikes landmark deal with Publicis for 'unfettered access' to its agencies and resources
Walmart – owner of Asda in the UK – has entered into what is being described as a strategic partnership with Publicis Groupe that will give the retailer “unfettered access” to all of the holding company’s agencies and resources.
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A new division - as yet unnamed - of the Groupe will be created to manage all of Walmart’s US advertising and in-store creative. Through this "entity", the retail giant will also have access to resources outside of marketing, including capabilities to support corporate reputation and technology that builds relationships with customers.
It will effectively see Publicis function as the primary agency of record.
“This relationship with Publicis Groupe will help us think and act differently, which will ultimately enable us to serve our customers even better,” explained Doug McMillon, president and chief executive officer of Walmart Stores as he announced the deal.
“Our ambition globally is to make every day easier for busy families, and having best-in-class marketing is critical to achieving that goal.”
It comes following what has been a turbulent time between the pair after Walmart ended its 10-year relationship with Publicis Groupe's media planning and buying firm Mediavest earlier this year. From the press release issued today (12 July), media is not believed to be part of the deal.
Publicis' Saatchi & Saatchi already handled a portion of Walmart's creative, but with partnership disruption is expected for IPG's Martin Agency which was also on the account.
In the UK, ties were with the Groupe were further strengthened earlier this year when Asda’s new marketing boss Andy Murray also appointed Saatchi & Saatchi and Zenith as its creative and media shops.
Chief executive of the Publicis Groupe, Maurice Levy, claimed that this strategic shift was born as a direct result of ‘the Power of One’ approach which put in place last year.
“Walmart is already implementing innovative approaches to reach its customers. Our goal is to leverage all of Publicis’ assets – not just the resources of one agency – to help them in these efforts,” he said.
The Walmart-Publicis entity will be led by Arthur Sadoun, chief executive of Publicis Communications.
The relationship, which is not exclusive, went into effect on 1 July. The financial terms have not been disclosed.