Woolworths Australia and New Zealand has commenced an RFP process for a lead creative agency partner.
Incumbent M+C Saatchi, which has held the account since 2017, is understood to have declined to contest the review.
A Woolworths spokesperson told Mediaweek: “We have commenced an RFP process for a lead creative agency partner for Woolworths Australia and New Zealand.”
“We continue to work with our existing partners throughout this process.”
M+C Saatchi’s Woolworths tenure
M+C Saatchi has worked with Woolworths since 2017 and was a founding partner of Greenhouse, Woolworths’ bespoke agency model.
Greenhouse was established six years ago and is powered by a collective of partner agencies, alongside Woolworths’ internal creative, design, experience and production capabilities.
TBWA\ will continue as the creative agency for Everyday Rewards.
According to Nielsen, Woolworths sits among Australia’s top 10 advertisers by budget, making the review one of the more closely watched creative pitches in the market.
Australia is the weak spot
The pitch comes amid pressure on M+C Saatchi’s Australian business. The agency group reported a sharp fall in revenue and profits for the year to December, with Australia a significant drag on the global result.
Global like-for-like net revenue fell 7.3% to AUD$386.0 million, while operating profit dropped 26.1% to AUD$47.0 million.
Australia ended the year down 31.9%, significantly weighing on group results. Without the local market, global revenue would have declined just 3.1%. The company described conditions in Australia as “very challenging”, citing client caution around campaign spend, particularly among consumer-facing businesses.
Other M+C Saatchi clients, including CommBank and Australian Retirement Trust, have also gone under review over the past year.
M+C Saatchi has declined to comment.
Main image: Woolworths Australia