LOS ANGELES Cost Plus has hired Omnicom Group's GSD&M to handle advertising for its 294 World Market and Cost Plus World Market stores, according to the agency.
There was no incumbent, said John McGrath, vp, communications at the Austin, Texas-based shop. The company had used an internal marketing department, which will now work with agency personnel.
The client spent $25-30 million in domestic measured media in each of the past two years, according to Nielsen Monitor-Plus. McGrath said the total marketing budget would be at least $60 million. There was no review.
The account would not be treated as a typical agency relationship, said McGrath. "The [agency] compensation model is being defined, but there is agreement on both sides that it will be based on performance and results," he said.
Barry Feld, CEO and president of the Oakland, Calif.-based business, said in a statement, "After watching over the years how they worked with Wal-Mart and Southwest Airlines to double their sales many times over, I reached out to [chairman and founder] Roy Spence at GSD&M and we sat down and had a long and exciting conversation about how we could build the World Market brand and business together."
"From our perspective, this is really getting back to our roots," McGrath said. "Our agency was built on building clients' business as architects and builders, and aligning ourselves with entrepreneurial companies that want to go to the top."
The relationship between the agency and Cost Plus's top-level management was conceived in a two-day session of GSD&M's Ideation Lab creative and business think-tank.
Ralph Yznaga and Carlotta Stankiewicz have been assigned lead creative duties, McGrath said.