CHI was appointed last year, but never created any advertising. Waitrose said the agency had been providing strategic communications that was no longer needed.
Marketing director Christian Cull said: 'We have been pleased with the contribution made by CHI, but there is no benefit for Waitrose to continue working with two agencies.'
Both were appointed by former Waitrose marketing director Mark Price, who is now development director at Waitrose parent John Lewis.
HOW was formed in April 2004 by two of the partners at Banks Hoggins O'Shea/FCB, and Mark Wilson, who ran the Waitrose account at FCB.