
Walgreens Boots Alliance has shortlisted two agency groups in the race for its estimated $600m (拢465m) integrated advertising and marketing account.
WPP, the incumbent, and Publicis Groupe are facing off in the last part of the review 鈥 one of the biggest international, integrated pitches of the year and a significant prize.
It is thought Omnicom participated in an earlier stage of the review but is no longer involved.
A spokesman for Walgreens Boots Alliance, which owns the pharmacy chains Walgreens in the US and Boots in the UK, declined to comment on the process but indicated the company plans to make a decision by the end of the year.
Industry observers suggested the result could happen sooner.
in the middle of the coronavirus lockdown and enlisted MediaLink to support the process.
The agency groups and MediaLink would not comment.
WBA聽first consolidated its creative, media, public relations and other communications disciplines in a single agency group at the start of 2017, when it awarded the business to WPP.
The US is a key market for WBA, generating about three-quarters of global sales. The UK represents a tenth and the remainder is chiefly spread across the rest of Europe.
Stefano Pessina, the chief executive of WBA who is moving to become executive chairman, told investors on its earnings call in July that 鈥渋t is highly likely that certain aspects of customer behaviour may change permanently鈥 because of聽the coronavirus pandemic.
Boots recorded a 78% jump in online sales in the last quarter as physical retail stores were shut during lockdown.
Pessina said he planned 鈥渁n acceleration鈥 of the group鈥檚 digitalisation plans, citing a recent partnership with Adobe and Microsoft, which will support the 鈥渕ajor expansion of our mass personalisation and customer engagement platform鈥.
Alex Gourlay, co-chief operating officer of WBA, said that聽鈥渨e believe that our ability to personalise our marketing鈥 by investing differently will mean 鈥渨e'll be able to convert more people鈥 in its mobile apps, and he added that WBA鈥檚 鈥減owerful loyalty programme鈥 can boost online sales.
WBA credited 鈥渢he ongoing roll-out of mass personalisation鈥 for lifting Walgreens鈥 retail sales by almost 1% in the last quarter.
Overall, WBA鈥檚 group sales rose marginally, although it said profit margins were 鈥渟ignificantly impacted鈥 because of Covid-19.
WBA spent $585m on advertising costs in 2019 compared with $665m in 2018 and $571m in 2017, according to its annual report.
A growing number of clients have been looking to integrate their marketing services needs with one agency group as they seek to offer a more joined-up customer experience for consumers and improve efficiencies.
Such accounts are聽seen as an attractive prize for big agency groups because it usually means a deeper relationship with a client and higher revenues.
Last year, teams from WPP and Publicis Groupe faced off in another high-profile, two-way fight in the final round for Centrica鈥檚 integrated account.