SFW triumphed in a pitch against undisclosed agencies to secure the brief, which involves the brand positioning and all launch communications before and during the relaunch.
The agency will handle all in-store and out-of-store marketing activity, such as DM to potential and existing customers and print ads.
House of Fraser's financial product portfolio, including a loyalty card and store card, were previously managed by GE Capital Bank. Barclays is taking over management of the cards, which will be relaunched next year. A House of Fraser credit card is expected to follow.
Maureen Dunlop, the head of customer relationship marketing at House of Fraser, said: "We were impressed with SFW's grasp of the brief. It demonstrated an excellent understanding of retail loyalty strategy and financial services marketing."
Ben Stephens, the managing partner at Stephens Francis Whitson, added: "To be given the opportunity to work with two such stellar brands is fabulous."