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Euan Sutherland, Matalan's recently-appointed marketing director, who worked with M&C during his previous job as the marketing chief of electricals retailer Currys, is said to be finalising the agency's appointment after discussions with a number of advertising agencies.

The brief would involve creating all Matalan brand communications, including advertising, direct marketing and in-store materials. Matalan said it was yet to make a final decision. M&C refused to comment.

The appointment will mark a watershed for the Matalan brand as it attempts to promote its 'high quality, low price' positioning.

The retailer's £30m budget will include a trebling of its TV ad spend to around £6m, giving it a sustained broadcast presence for the first time (Marketing, May 9).

Previous work focused on press and below-the-line campaigns through agencies including CDP and Edge. Direct marketing is likely to be used much more aggressively by Matalan as it exploits its massive customer database.

Shoppers become lifetime members of Matalan by paying a £1 fee on any visit.

The appointment will come as the value-clothing market continues to grow.

Research published earlier this month by Verdict suggests that brands such as Matalan, George at Asda and Primark will steal market share from mid-market retailers over the next few years.

Tesco last week announced the launch of a clothing range under the Cherokee brand, which it hopes will emulate the success of George at Asda. Sainsbury's also has a clothing line, branded Jeff & Co.