Lidl, the German discount supermarket chain, is drawing up a shortlist of agencies to pitch for its &£5m account.
The agencies have been briefed to create a branding campaign for the chain, which has 200 stores across the UK.
Lidl, like other discounters, is facing growing pressure from the major UK chains which say they are cutting prices following Wal-Mart’s take-over of Asda in June.
Lidl previously used a mix of out-of-house and in-house creative work focusing on regional pricing campaigns. The company refuses to name the agencies that it uses, having moved its account out of Yellow M in 1998.
However, a spokeswoman says a number of big-name agencies have been approached, and pitches are due to take place before Christmas.
She confirms the campaign will include some corporate branding work, and adds: “They [the agencies] will come back in a few weeks’ time and then we will decide who will get the account. It will be a board decision.”