±±¾©Èü³µpk10

Carat won the business after a pitch against incumbent Starcom Motive, Walker Media, Mediacom and Universal McCann.

The review, overseen by brand communications director Katie Spriggs, was called in February and follows a wide-ranging restructure at the retailer, which included taking the axe to its marketing department, including marketing director Muriel Stirling.

The loss of the account is likely to come as a double-blow to Starcom Motive. The French food giant Danone shifted its £5m media planning account for its Jacob's Bakery division out of Starcom Motive and into Carat last week. Carat already handled the buying business.

The retailer is also reviewing its £10m creative account, with a decision expected to be made by May 1.

DDB London and Delaney Lund Knox Warren & Partners have seen off competition from J. Walter Thompson, Clemmow Hornby Inge, Euro RSCG London and WCRS to get to the final round of pitching, which is expected to take place this week. The account was held by Abbott Mead Vickers BBDO, which is not repitching.

The troubled retailer has struggled to forge a strong brand identity in an increasingly competitive market and disappointing sales figures over the festive period forced it to issue a third profit warning in less than a year.

It has seen its books, video and DVD market eaten away by other retailers, especially supermarkets as they move into the entertainment sector.

This morning it was reported that the retailer is to sell its Asia-Pacific operations. It is expected to announce the sale along with its interim results next week.

Both Carat and WHSmith declined to comment.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .