WH Smith rethinks £7m media work

WH Smith is reviewing its £7m media planning and buying account to cut costs following poor Christmas sales and a profit warning.

The high-street retailer is compiling a list of agencies to pitch for the business. It is not clear whether the list includes incumbent Starcom Motive, which has held the business for the past ten years.

The company said that no decision has been taken to review the creative account, held by Abbott Mead Vickers BBDO.

The review is led by WH Smith brand communications director Katie Spriggs, the firm's most senior marketing executive following the exit of brand director Muriel Stirling two weeks ago.

Her departure followed criticism of the retailer's Christmas promotions strategy by chief executive Kate Swann, who joined from Argos in November.

Christmas trading figures were disappointing, triggering a profit warning and the sacking of managing director of UK retail Beverley Hodson.

This week, WH Smith is expected to come under fire from shareholders angry with the size of Swann's remuneration package.

Commenting on the media review, Spriggs said WH Smith had been very happy with the media work undertaken by Starcom Motive over the past ten years, but a review was good practice.

"In a competitive market we need to ensure we are optimising both the quality and cost of our media activities. Therefore, we have taken the decision to conduct a competitive media review," she said.

Separately, WH Smith is searching for a commercial director and a marketing director. The former will have overall responsibility for trading and marketing. Nigel Leahy, director of WH Smith's marketing unit, left in November to return to B&Q.

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