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Last July, the company ended its relationship with M&C Saatchi and its sister direct marketing agency Lida as part of a strategy to refocus its marketing budget on low-cost advertising and direct mail. Briefs have since been divided between an in-house team and the artwork and photography supplier Capricorn.

However, Matalan is talking to agencies and is believed to have shortlisted five for a pitch. The review is not being conducted through an intermediary and is not expected to affect the company's relationship with its media agency, Feather Brooksbank.

M&C and Lida won the Matalan account in June 2002. The company spent £11.5 million above the line in the following year. However, the strategy changed when Ruth Start became the advertising manager last June.

Nobody at Matalan was available for comment as ±±¾©Èü³µpk10 went to press.