It is believed that Lowe made the shortlist along with Miles Calcraft Briginshaw Duffy and Adam & Eve, but today announced it was leaving the pitch process.
News of the resignation caps a grim year for the agency, which has been decimated by huge account losses and is now sustained mostly by globally aligned business.
A spokeswoman for Lowe said: "We are incredibly proud of the work the team here at Lowe has produced for John Lewis.
"However, we are running a business, and as such we need to make decisions about how best to deploy our resources and we do not believe the pitch environment favours our participation."
The move throws further doubt on the role of Lowe London's managing partner, creative, Ed Morris.
Morris had been expected to lead Lowe’s fight to retain the John Lewis business, and is due to move into a consultancy role at the agency after the pitch is completed in January.
But it is understood that Morris has admitted to friends that he is already asking himself serious questions about his future in an agency whose global clientele hold little interest for him.
During the year, Lowe lost domestic accounts for Innocent Drinks and Twinings.
In August it declined to repitch for Stella Artois, a client for 26 years. Three months later, its £100 million Nokia N-Series business departed for Wieden & Kennedy.
Vauxhall, the Rugby Football Union and some small amounts of COI work, which will come up for statutory review in February, are the only UK accounts still at the agency.
However, a spokeswoman denied that Morris would be leaving the agency.
She said: "Ed remains an employee. He is the executive creative director – his role is not to run the John Lewis account."
She added that no redundancies would be made as a direct result of the John Lewis decision.
Comments
I've never understood why incumbent agencies re-pitch when clients decide to look around. It's not much of a vote of confidence is it? Better to do what Lowe has done and put their resources elsewhere.
surely this move can't be good for the agency??
Current TV ads are cracking. Good execution; demonstrate breadth of offer; clear branding, and memorable.
And a Beatle soundtrack that fits perfectly with the JL demographic.
In fact everything a good TV ad should be.
Word to the wise JL, I'd stick with Lowe...
Dukie - 18/12/2008
I AGREE RICHARD
Holly - 18/12/2008
Because, Richard, sometimes when an agency's had an account for a long time, it gets complacent. Re-pitching for it reminds the agency why they wanted it in the first place, and makes them work hard on a new direction for the brand when they might otherwise have churned out the same stuff they've always done for them.
There have been plenty of agencies that have kept their accounts after a re-pitch, so it's not pointless. It's just a reinvigoration of creative for the agency, and a vote of confidence for the client that they're still with the best agency for their brand.
I think your right Richard, however sometimes the agencies can't afford to loose the client, so they pitch again. But I'm guessing, although a big loss financially for Lowe, they'll live. I'm sure they're already pitching for some other big accounts!
After such a cracking campaign this Christmas time (Matt - nice summary), I can't see how Lowe could be considered as being 'complacent'. Looks to me like an agency who knows its client, brand and target audience so well that it's in a position to deliver spot on creative that is really in tune with its audience, instead of wasting its time delivering a pitch for the sake of politics... Bit of a slap in the face, when the client then turns round and asks you to tap dance for your money straight after...
i totally understand where Richard and Lowe are coming from.if the client has decided to look else where,in some circumstances repitching is a wasye of time and resources more so now in this finicial climate.
It's like an episode of Mad Men.
Darn. I sent a covering letter with my CV about 3 hours ago which talked extensively about my respect for their continued work with John Lewis. I'm suprised re-pitches aren't withdrawn more often - as already remarked, it makes the agency look like they're on the back foot a bit.
Bit of a knee jerk reaction to something which is sometimes just a paper exercise. I agree with Holly, having re pitched for much smaller accounts.
Re-pitching never hurt AMV, retaining both BT and Sainsury's a couple of years ago. Having re-pitched and both retained and lost business, my experience tells me that unless you're 100% sure the client is unhappy with your team, it's worth a go.
Are the John Lewis ads really any good though? Like-for-like sales are down. Lowe's campaign is the type of work that pleases the ad community and might do well when times are good and people are feeling good about spending money in a department store. I'm v sceptical about Lowe resigning the account. Ed Morris seems to be moving v slowly out of the account and the JL business is under performing.
The recession will see clients looking at anything they can to improve their trading position so we'll see an upturn in reviews which is good news for the likes of AAR but not Agenices who are busting a gut to do the best they can for their clients.
Declining to repitch in these times doesn't apperat to be a smart decision especially if the business is in a fragile place anyway. However we are not privvy to how level a playing field it is and if Lowe's feel that they are going to be a makeweight in the process then the time, energy and costs would not be worth the investment.
Does seem sensational, but to pull out of such a good account like John Lewis sounds like Lowe must have had good reason. Why is it that when work is good Clients feel it is acceptable to ‘threaten’ their agencies with a re-pitch, with exorbitant costs that they don’t cover. I say good on Lowe – the work’s great and if it’s not the work that’s in question, surely Clients and agencies need to work things through rather than taking it to a pitch.
I cannot believe that this would happen without there being a really good reason after the year Lowe have had. Shame really as the latest work was great.
Firstly, we don't know enough about the state of the relationship between JL and Lowes to make a call. Secondly, there are any number of reasons for a client to call a pitch. Changes of personnel on either side, too many fights over the integrity of the work, CEO's needing a scapegoat at the AGM, general underperformance by he agency or \(and please excuse the cynicism) the knowledge that a significant cost reduction can be achieved in this economic environment if the business moves. One thing is for sure, if the relationship is healthy, business differences can be negotiated and resolved without the need to call a pitch. However, if the relationship is irreoncilably toxic, even a pitch response that blows the doors off will not be sufficient to retain the business. If this is the case with JL, then Lowe have made the right move. Given the financial climate, agencies will be thinking much harder about committing reduced staffing recources to a pitch costing tens of thousands of pounds, when the odds of winning are 4:1 or worse. Better to keep your powder dry and service the living daylights ot of your existing clients to ensure their business until the economy stabilises.
Comments
Martin Corcoran - 18/12/2008
sensational
RICHARD WILLIAMS - 18/12/2008
I've never understood why incumbent agencies re-pitch when clients decide to look around. It's not much of a vote of confidence is it? Better to do what Lowe has done and put their resources elsewhere.
Francis MacGillivray - 18/12/2008
surely this move can't be good for the agency??
Matt Stewart - 18/12/2008
Current TV ads are cracking. Good execution; demonstrate breadth of offer; clear branding, and memorable. And a Beatle soundtrack that fits perfectly with the JL demographic. In fact everything a good TV ad should be. Word to the wise JL, I'd stick with Lowe...
Dukie - 18/12/2008
I AGREE RICHARD
Holly - 18/12/2008
Because, Richard, sometimes when an agency's had an account for a long time, it gets complacent. Re-pitching for it reminds the agency why they wanted it in the first place, and makes them work hard on a new direction for the brand when they might otherwise have churned out the same stuff they've always done for them. There have been plenty of agencies that have kept their accounts after a re-pitch, so it's not pointless. It's just a reinvigoration of creative for the agency, and a vote of confidence for the client that they're still with the best agency for their brand.
André Breda - 18/12/2008
I think your right Richard, however sometimes the agencies can't afford to loose the client, so they pitch again. But I'm guessing, although a big loss financially for Lowe, they'll live. I'm sure they're already pitching for some other big accounts!
Lucinda Mould - 18/12/2008
After such a cracking campaign this Christmas time (Matt - nice summary), I can't see how Lowe could be considered as being 'complacent'. Looks to me like an agency who knows its client, brand and target audience so well that it's in a position to deliver spot on creative that is really in tune with its audience, instead of wasting its time delivering a pitch for the sake of politics... Bit of a slap in the face, when the client then turns round and asks you to tap dance for your money straight after...
zivai anesu - 18/12/2008
i totally understand where Richard and Lowe are coming from.if the client has decided to look else where,in some circumstances repitching is a wasye of time and resources more so now in this finicial climate.
Hollie Newton - 18/12/2008
It's like an episode of Mad Men.
Eddie Stalwart - 18/12/2008
Darn. I sent a covering letter with my CV about 3 hours ago which talked extensively about my respect for their continued work with John Lewis. I'm suprised re-pitches aren't withdrawn more often - as already remarked, it makes the agency look like they're on the back foot a bit.
David Busbridge - 19/12/2008
Bit of a knee jerk reaction to something which is sometimes just a paper exercise. I agree with Holly, having re pitched for much smaller accounts.
Richard Hayter - 19/12/2008
Re-pitching never hurt AMV, retaining both BT and Sainsury's a couple of years ago. Having re-pitched and both retained and lost business, my experience tells me that unless you're 100% sure the client is unhappy with your team, it's worth a go.
Martin Corcoran - 19/12/2008
Are the John Lewis ads really any good though? Like-for-like sales are down. Lowe's campaign is the type of work that pleases the ad community and might do well when times are good and people are feeling good about spending money in a department store. I'm v sceptical about Lowe resigning the account. Ed Morris seems to be moving v slowly out of the account and the JL business is under performing.
Jonathan Clark - 19/12/2008
The recession will see clients looking at anything they can to improve their trading position so we'll see an upturn in reviews which is good news for the likes of AAR but not Agenices who are busting a gut to do the best they can for their clients. Declining to repitch in these times doesn't apperat to be a smart decision especially if the business is in a fragile place anyway. However we are not privvy to how level a playing field it is and if Lowe's feel that they are going to be a makeweight in the process then the time, energy and costs would not be worth the investment.
Gen Kobayashi - 19/12/2008
Does seem sensational, but to pull out of such a good account like John Lewis sounds like Lowe must have had good reason. Why is it that when work is good Clients feel it is acceptable to ‘threaten’ their agencies with a re-pitch, with exorbitant costs that they don’t cover. I say good on Lowe – the work’s great and if it’s not the work that’s in question, surely Clients and agencies need to work things through rather than taking it to a pitch.
Rob Mortimer - 19/12/2008
I cannot believe that this would happen without there being a really good reason after the year Lowe have had. Shame really as the latest work was great.
marcus evans - 21/12/2008
Firstly, we don't know enough about the state of the relationship between JL and Lowes to make a call. Secondly, there are any number of reasons for a client to call a pitch. Changes of personnel on either side, too many fights over the integrity of the work, CEO's needing a scapegoat at the AGM, general underperformance by he agency or \(and please excuse the cynicism) the knowledge that a significant cost reduction can be achieved in this economic environment if the business moves. One thing is for sure, if the relationship is healthy, business differences can be negotiated and resolved without the need to call a pitch. However, if the relationship is irreoncilably toxic, even a pitch response that blows the doors off will not be sufficient to retain the business. If this is the case with JL, then Lowe have made the right move. Given the financial climate, agencies will be thinking much harder about committing reduced staffing recources to a pitch costing tens of thousands of pounds, when the odds of winning are 4:1 or worse. Better to keep your powder dry and service the living daylights ot of your existing clients to ensure their business until the economy stabilises.