Australian department store chain David Jones is expected to begin a review of its media account worth close to $25 million, AdNews understands.
The account is currently managed by Carat, with sources revealing that the account was resigned by the agency due to a breakdown in the relationship.
It is understood the two will most likely continue to work together up until Christmas, one of David Jones' most profitable periods of the year.
However, during this time the department store will also look into taking some of its media capabilities in-house.
David Jones is one of Australia's most recognisable and prestigious brands, which earlier this year saw the shock resignation of its CEO David Thomas.
The business, owned by South Africa-based multinational retail company Woolworths, has also been struggling financially in recent months, with its profits plunging 39% in its recent half-year results.
Last year it was revealed that David Jones was also pitching its creative account, with brand agency Maud being appointed to its roster, leading the retailer's Christmas campaign.
Medium Rare was also appointed as the brand's content agency around the same time, working on its owned content platforms, primarily its magazine and catalogues.
AdNews understood at the time that the retailer had opted to take various creative capabilities in-house after having a significant reduction to its marketing budgets, which is also believed to be a reason behind its decision to move its media.
The trend of in-housing has ramped up in recent months, with Sportsbet becoming the most recent major brand to manage its creative capabilities internally.
Carlton United Breweries has also developed a bespoke unit to service its digital advertising strategy, while Woolworths created its own in-house team led by former Adshel boss Mike Tyquin, Cartology. The team would service all owned media sales for the supermarket chain.
The account move is another major change for Carat and it's parent company Dentsu Aegis Network, which earlier this week continued its restructuring under new boss Henry Tajer, closing down its investment arm Amplifi and reintegrating it back into its three core media agencies.
AdNews has contacted David Jones and Dentsu Aegis Network for further comment.
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