The Asda supermarket chain has hired the boss of one of the world's biggest advertising agencies as its new marketing director, with a brief to reinvent the grocer's image.
Rick Bendel, chief operating officer of the Paris-based Publicis advertising group, is joining Asda at the end of this month after more than 30 years in the advertising industry. The big-name hire will be viewed as a coup for Asda and the role has been elevated to a boardroom position to lure Mr Bendel.
The Leeds-based chain, part of the US-owned Wal-Mart discount empire, has been outpaced by Tesco in recent years, and failed to deliver the sales and profits demanded by the US. But analysts say there are signs of recovery and last month chief executive Andy Bond told analysts he wanted to broaden Asda's appeal and take the brand upmarket. Yesterday he said: "A fresh and invigorated approach to marketing is critical to the next stage of our recovery plans."
Mr Bendel, 48, has worked for some of the biggest brands during his time at Publicis, including Cadbury, Renault, L'Oréal and Nestlé. For the past 17 years he has also worked with Asda. He was brought in by Archie Norman and Allan Leighton, the two executives who resurrected the Asda chain in the early 90s, and oversaw the Asda Price and Rollback campaigns. More recently, Publicis has been behind the adverts featuring Colleen McLoughlin as the face of George clothing.
Mr Bendel said he intended to put the customer back at the centre of the Asda business and restore the group's confidence. "We are not here to copy, we are here to lead. That is what customers expect of Asda." He would have a "very wide remit" including developing the group's Asda and George ranges together with all advertising and marketing activities.
At Publicis he oversaw a series of takeovers, led by the multibillion-dollar acquisition of US rival BCom3. He will be succeeded at the advertising group by Pearson executive and former Financial Times group chief executive Olivier Fleurot.
Separately, Asda yesterday announced plans to scrap lower wage rates for younger workers. In a move welcomed by trade unions, about 5,000 workers under 18 will see their hourly pay rate rise from £5.19 to £5.71, at a cost to Asda of £1.7m a year.
An Asda executive said lower pay for young workers was no longer acceptable. "You should be paid for the job you do, regardless of your age."
