David Jones appoints M&C Saatchi for creative in Australia

M&C Saatchi has been awarded a three-year advertising contract following a final two-way battle with Saatchi & Saatchi. Up to five agencies were vying for the account when it was first pitched in February.

The account is thought to be Saatchi & Saatchi's largest account in Australia, as the agency had devoted a special division, Team Saatchi, to work on the department store's business.

On the account shift, David Jones group GM for marketing and financial services, Damian Eales said, "Having already secured our key creative talent, in March this year, we commenced a tender process for our advertising agency contract. After lengthy negotiations and a due diligence process to ensure we were able to achieve our creative objectives in a more financially efficient manner, we have awarded a three-year advertising contract to M&C Saatchi.

He added: "This has been a difficult decision as we short-listed two exceptional agencies. We have a great deal of respect for Saatchi & Saatchi, which has served our business well over the last 14 years.

According to a statement from the department store, the move was part of a strategic "cost and risk minimisation" program, which focuses on delivering cost efficiencies without jeopardising the quality or consistency of its business outcomes.

In the case of its advertising contract, David Jones had previously secured its own creative talent to spearhead its advertising.

Eales further noted that M&C Saatchi was chosen on the basis of its demonstrated ability to deliver large and complex advertising programs for similar clients, the strength of its leadership team and creative capability, as well as the cost efficiency it can bring to our business through the scale and sophistication of its operation.

In October last year, David Jones awarded its US$38 million media account to Mitchell & Partners, displacing long-term incumbent MediaCom.

Established in 1838, David Jones is Australia's oldest department store and also the oldest department store in the world still trading under its original name.