CANADIAN DEPARMENT STORE MOVES $66 MILLION ACCOUNT INTO PADULO

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(July 6, 2001) TORONTO -- The Bay (La Baie in Quebec) has appointed Padulo Integrated, Toronto, as its main advertising agency after only slightly more than one year with Wolf Group Canada, also Toronto.

Owned by Hudson's Bay Co., The Bay has 100 department stores across Canada. Padulo had not been on the shortlist when Canada's oldest retailer reviewed agencies for its account, estimated at more than $66 million, in the spring of 2000. At the time, Wolf won against Omnicom Group's BBDO Canada, Communique and Interpublic Group of Cos.' MacLaren McCann.

The account was awarded to Padulo without a formal review. Neil Fedun, The Bay's senior vice president of marketing, was familiar with Padulo's work from his days at Zellers, when Padulo developed "The lowest price is the law" positioning for Zellers' 300 mass merchandise department stores, which are also owned by Hudson's Bay. Padulo also has heavy experience in both retail and reward programs, which are both essential to The Bay's current marketing efforts.

A year ago Mr. Fedun said The Bay was looking for an agency partner with "the ability to creatively bring our new strategy to life. Wolf has demonstrated a refreshing approach to the traditional client/agency way of doing business."

Wolf subsequently launched The Bay's "Shopping is good" positioning, which Padulo is now expected to continue. The agency's mandate includes strategic planning, branding and advertising services. -- Gail Chiasson

Copyright July 2001, Crain Communications Inc.

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