The move to consolidate its advertising follows the $11bn merger of Sears Roebuck and Kmart in November to form Sears Holdings, the third-largest retail group in the US behind Wal-Mart and The Home Depot.
Earlier this year, Sears Roebuck asked its two principal agencies, Y&R and Ogilvy & Mather Worldwide, for ideas to integrate the account.
Sears is looking to return its brand to prominence in the US market after slipping following years of struggling against tough competition. The merger with Kmart was about bringing together two weakened brands in an effort to drive both forward.
Luis Padilla, president of merchandising and marketing for Sears Retail, said: "The single-mindedness with which we are pursuing our goal of restoring Sears to pre-eminence requires a similar focus in our agency partnerships."
He added: "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," he said.
Y&R will take over the account on October 1 and will have responsibility for the Kenmore, Craftsman and DieHard brands, as well as non-product Sears Roebuck advertising. This includes broadcast creative and production, motorsports, multicultural marketing, customer relationship management and thought leadership. The agreement does not cover media planning or buying.
Sears has more than 2,400 Sears-branded and affiliated stores in the US and Canada, which includes approximately 870 full-line and 1,100 speciality stores.
The move does not affect the Kmart account, held by another WPP agency Grey Advertising, which is unaffected by the review.
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