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Walmart gains ‘unfettered access’ to Publicis’ agencies in landmark deal

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Walmart and Publicis Groupe have formed a non-exclusive ‘strategic relationship’ giveing the retailer access to all of the holding group’s agencies.

A new  – as yet unnamed – division of the Groupe has been founded to manage the supermarket chain’s advertising and in-store creative in the United States. Walmart will also have access to resources outside of marketing, including capabilities to support corporate reputation and technology that builds relationships with customers.

The deal will mean Publicis will act as the primary agency of record and comes as a result of the group’s ‘Power of One’ strategy, which was unveiled by CEO Maurice Levy last year.

The shift saw Publicis restructured to emphasise four ‘solution hubs’ over individual agency networks. The new ‘client-first’ model customizes teams for each client depending on its needs rather than agency capabilities. Levy said: “This relationship is the direct result of Publicis’ new approach, ‘the Power of One,’ which is designed to deliver end-to end solutions for our clients. 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.”

The deal also marks the end of Walmart’s nearly decade-long creative relationship with The Martin Agency. “As of September, we will no longer be working with them on their advertising,” said an agency spokesperson. “We’re proud of the work we’ve done with them since 2007 and wish them all the best.” Martin shared creative duties on the client with Publicis’ Saatchi & Saatchi, which will continue to work on the account.

Earlier this year, Public lost Walmart’s media account.  The loss of Walmart, which spends nearly $1 billion in measured media annually, came shortly after lead agency Starcom Mediavest lost two other major media accounts, Coca-Cola and Procter & Gamble in the US.

The Walmart-Publicis entity will be led by Arthur Sadoun, chief executive of Publicis Communications.

 

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