According to Reuters and Adage.com, Wal-Mart Stores, Inc. (NYSE:WMT) has assigned its $580 million account to The Martin Agency and Mediavest. The move comes a few weeks after Wal-Mart fired senior marketing executive Julie Roehm.
The move is a victory for Martin parent Interpublic Group. One of its agencies, FCBDraft, had lost the business when the account was thrown into review after Ms. Roehm's departure. Odd as it may seem, Wal-Mart never gave a full accounting of the marketing leader's departure or the need for the review.
Interpublic has been hit by a number of defections at its operating ad agencies, and the stock has only recently come back from a sharp sell off this summer.
For Wal-Mart, the challenge will be directing the new marketing partners to get customers back into the world's largest retailer's US stores. The flagging sales in the company's home market have dropped the stock price 12% over the last two years while the Dow is up over 15%.
Douglas A. McIntyre can be reached at 24/7 Wall St.
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
Reader Comments (Page 1 of 1)
1-15-2007 @ 4:36PM
Greg Calderone said...
IPG is a good play off this news. It has hit bottom and is rebounding nicey. Cramer called this stock (www.cramersez.com or www.thestreet.com). Nture if we see 30 again soon, but 20's is coming fast.