Grupo Gallegos Drops Out of Wal-Mart Hispanic Review

Agency Search Stalled Following Dismissal of Julie Roehm

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SAN FRANCISCO ( -- In the latest twist on Wal-Mart's agency search saga, Grupo Gallegos, Long Beach, Calif., has dropped out of the retailer's Hispanic review.

Grupos Gallegos has pulled out of the stalled Wal-Mart multicultural review.

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Why Wal-Mart Fired Its Change-Agent Marketer Julie Roehm -- and the Agency She Hired
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Previous Wal-Mart Stories:

Dec. 7, 2006
Wal-Mart to Reopen $580 Million Account Review
Newly Appointed DraftFCB Cut Following Ouster of Julie Roehm
Dec. 5, 2006
Julie Roehm Out at Wal-Mart
Recently Completed $580 Million Wal-Mart Stores Agency Review

Terse statement
Grupo Gallegos today issued a terse statement saying it would no longer participate in the review for the Hispanic account, expected to be worth more than $55 million. Wal-Mart's Hispanic agency of record since 1995, independent Lopez Negrete, Houston, is a finalist in the review. Other contenders for the account include LatinWorks, Austin, Texas, and Miami-based Accentmarketing, which 49% owned by Interpublic Group of Cos.

Final presentations were made Nov. 17. But a decision has been postponed following the dismissal last week of Julie Roehm, Wal-Mart's senior VP-marketing communications who was handling the review process. The agency she selected for the retailer's $580 million general-market account, DraftFCB, was subsequently fired.

Broader review
In addition to the Hispanic contenders, there are three African-American and three Asian-American agencies pitching for other facets of Wal-Mart's multicultural account. African-American incumbent E. Morris Communications, Chicago, is competing against GlobalHue, and True, New York. The Asian-American incumbent is IW Group, Los Angeles, 49% owned by Interpublic. The other two Asian-American contenders are New York-based Admerasia's New A and Pancom, Los Angeles.

Wal-Mart has been working with search consultant Select Resources International, Santa Monica, Calif., in both the general market and the multicultural reviews.

Executives from Select Resources as well as Wal-Mart and Grupo Gallegos executives did not return calls and e-mails by deadline.

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Mya Frazier contributed to this report.
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