Euro RSCG poised to pick up Matalan task

Matalan is expected to appoint Euro RSCG London to handle an advertising brief for the discount clothing and homeware retailer.

The company had turned its back on using an above-the-line agency last year, after parting company with M&C Saatchi and its sister direct marketing agency Lida. Since then, work has been undertaken by an in-house team and the artwork and photography supplier Capricorn. It is understood that sister agency KLP Euro RSCG may also pick up a database management project.

According to Nielsen Media Research, the company spends £11.5m a year on advertising. Euro RSCG is understood to have pitched against four other agencies. A spokeswoman for Matalan declined to confirm an appointment had been made and would only say that the company worked “with agencies on a project basis”.

Earlier this year the Matalan group, which includes jeans brand Lee Cooper, announced a 48 per cent fall in annual profits for the year ending February 28, down from £117.4m to £60.7m. This was accompanied by speculation that Asda-owner Wal-Mart was considering bidding for the retailer.

The chain has since embarked on a store refit programme and a new product mix, and boosted its marketing efforts. In September, the Matalan group reported improved sales with a 4.5 per cent rise on a like for like basis for the six months ending August 28. Analysts are forecasting full-year pre-tax profits of about £85m.

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