Lidl has appointed Karmarama as its lead creative agency, tasking the Accenture-owned shop with creating a fresh long-term brand strategy "that will be brought to life across the customer experience in the UK".
Karmarama will take over from incumbent TBWA in March. TBWA, which has held the account for five years, did not repitch for the business.
When Lidl called its review earlier this year, it said it wanted to "explore other creative partners to deliver a brand proposition that continues to set us apart".
Under TBWA, Lidl's output has included platforms built around #LidlSurprises and the concept that the German grocer is ‘Big on quality, Lidl on prices’. Both campaigns were underpinned by continued sales growth (£6.05bn in 2017) and helped Lidl be regularly named as the ‘fastest growing supermarket’ in Kantar rankings.
Claire Farrant, marketing director at Lidl said she was "bowled over" by the four agencies in the pitch – which also included VCCP, WCRS and Leo Burnett - but ultimately Karmarama clinched it.
"Karmarama demonstrated clearly at the final pitch and through the process, the team's strategic thinking and how that could be delivered creatively," she explained.
"Their ideas, we believe, could easily play out in the coming months to maintain our competitive edge versus the rest of the market . We are really looking forward to starting work together from the start of March next year."
Ben Bilboul, chief executive at, Karmarama said: "Lidl is a brilliant challenger business - providing Britain with the highest quality products at the lowest possible prices.
"We’re elated at winning what is one of the biggest pitches of the year and excited to work with their inspirational team to help unleash the huge potential of the brand and drive its next phase of business growth."
The pitch was handled by AAR. Under TBWA, the account was estimated to be worth in the region of £70m.
The win marks a coup for Karmarama, which lost Iceland's ad account earlier this year after the budget retailer brought creative in-house. The business is also set to part ways with Just Eat, which is now on the hunt for a global creative partner.