Sears, Roebuck & Co. severs 43-year old tie with O&M; consolidates account with Y&R

MUMBAI: Sears, Roebuck and Co., a wholly owned subsidiary of Sears Holdings Corporation, has decided to move away from its 43-year long creative agency Ogilvy & Mather Worldwide. The company will now be consolidating all advertising for the retailer and its brands under one agency -- Young & Rubicam, which is also a member of the WPP Group like O&M.



The new arrangement will come into effect from 1 October, 2005 and is designed to deliver a more focused and consistent brand message to customers. The account is pegged at $640 million.



The announcement follows agency presentations, during which Sears, Roebuck asked its two principal agencies, Y&R and O&M Worldwide, for proposals to integrate the account and reinvent the collaborative process to enhance value and improve speed to market.



"The single-mindedness with which we are pursuing our goal of restoring Sears to preeminence requires a similar focus in our agency partnerships," said Sears Retail president of merchandising and marketing Luis Padilla.

"Both firms presented persuasive proposals, but we are in constant pursuit of new approaches to better connect with and profitably serve customers as one company with extensive capabilities," Padilla added.

Under a service agreement between Sears and Y&R, the marketing communications agency will have advertising responsibility for the Kenmore, Craftsman and DieHard brands, as well as non-product Sears, Roebuck and Co. advertising. This includes broadcast creative and production, motor sports, multicultural marketing, customer relationship management and thought leadership. The agreement does not cover media planning or buying, which will continue to be with MindShare.

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