BBD Perfect Storm won the business following a three-way pitch.
Dreams has focused on a functional and price-led strategy in its marketing in the past. The brand is now looking to progress into the moving-home market and build on its relationship with its consumers post-purchase.
The retailer tried to move away from its price-led strategy in 2011, when it launched a branding campaign by Rainey Kelly Campbell Roalfe/Y&R.
BBD Perfect Storm will start working on campaigns immediately, with the agency’s responsibilities including advertising, digital and CRM.
Jason Foo, the chief executive of BBD Perfect Storm, said: "During pitch process I think we really related to Dreams’ view of where the brand could go. We’ll be moving towards more emotionally led conversations targeting home movers, with a more aspirational approach."
The appointment was made following new initiatives put into place by the marketing team and Dreams’ new chief executive Mike Logue, also recently appointing Lisa Bond as marketing director.