Its advertising, the bulk of which is created by Uber is heavily TV-based. DFS is a former sponsor of ITV1’s Dancing On Ice and All Star Mr & Mrs but the majority of its budget is spent on spot advertising.
The creative account is not thought to be affected by the review, which according to insiders is designed to increase the efficiency of the TV buying. The existing spend level is expected to be maintained.
DFS was acquired by Poundland-owner Advent International for £500 million and Kirkham relinquished control of the firm to Richard Baker, a former chief executive of Alliance Boots.
At Christmas, it reported a better-than-expected first quarter after the UK's biggest sofa retailer saw sales rise 4.2 per cent. Revenues increased to £149.6 million in the 13 weeks to 30 October. Profits increased to £15.2 million with analysts crediting it with having benefited from the demise of other retailers such as Land of Leather.