Superdrug, the health and beauty retail chain, is axing all of its estimated &£10m above-the-line creative work with immediate effect.
The company has become the third high-profile brand to axe television advertising this year, following similar decisions taken by food giant HJ Heinz (MW July 21) and Heineken in October.
Superdrug appointed Euro RSCG London to handle its advertising just seven months ago, and pledged to throw &£10m behind a major autumn branding campaign (MW May 13). But the retailer is understood to have been unhappy with the agency’s most recent work, which sources say have done little to boost sales. The retailer will instead plough marketing budgets into guerrilla campaigns, public relations and supplier-funded advertising.
It comes at a time when Superdrug is focusing all its resources on revamping its stores nationwide. No one at Superdrug was available for comment as Marketing Week went to press.
It is understood that Euro RSCG will no longer be retained by the company, which is owned by AS Watson, the retail arm of Hutchison Whampoa.
Agencies are now likely to be appointed on a project basis to handle campaigns. The decision is unlikely to affect Superdrug’s media spend, which is handled by Zenith Optimedia.
AS Watson recently appointed WFCA to handle the advertising account for its Savers health and beauty retail brand (MW last week).