Wal-Mart Chooses Select Resources for Agency Review Redo

Consultancy Managed $580 Million Contest Last Time Around

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NEW YORK (AdAge.com) -- Wal-Mart has hired Select Resources International, the consultancy that handled its recent ill-fated $580 million creative and media
Photo: AP

As it picks up the pieces after firing DraftFCB from its $580 million ad account, Wal-Mart has retained Select Resources International to conduct the review for a replacement agency.

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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
review, to manage its upcoming mulligan, according to executives familiar with the situation.

Roehm dismissal
Wal-Mart last week fired Interpublic Group of Cos.' DraftFCB just days after dismissing Julie Roehm, senior VP-marketing communications, who was a key decisionmaker in that review. Executives close to the company said Ms. Roehm's dismissal stemmed in part from violations of Wal-Mart policy during the review, including her participation at a swanky dinner thrown by DraftFCB at Manhattan's Nobu 57. Ms. Roehm has denied receiving any gifts or gratuities.

Limited field
Most observers say it is unlikely Wal-Mart will open the review to a wide field, given that it wants to complete the process by the end of January. They say the field of contenders could be limited to the finalists in its last go-around. They were Interpublic's Martin Agency, WPP Group's Ogilvy & Mather and the incumbent, Omnicom Group's GSD&M. Wal-Mart has said DraftFCB will not be allowed to participate, but that Carat, the Aegis Group-owned company that won media duties, will be allowed to compete.

SRI referred calls to Wal-Mart, where a spokeswoman would not confirm whether the consultancy would be handling the do-over. "We have reopened the review," said spokeswoman Linda Blakely. "We expect to have something announced and share shortly after the first of the year. I have nothing else to say."

Major embarrassment
The scandal has been a major embarrassment for Wal-Mart and its plans to reshuffle its marketing approach. Executives familiar with the company have said that the review will actually be run by Eduardo Castro-Wright, the CEO of Wal-Mart Stores USA, but Ms. Blakely said that Wal-Mart Chief Marketing Officer John Fleming is handling the review. She would not discuss whether CEO Lee Scott personally has become involved.

"I'm not going to go into details; we shared what we plan to share," Ms. Blakely said.

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Alice Z. Cuneo contributed to this report.
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