Endeavour Group, the ASX-listed operator of Dan Murphy's and BWS, has ended its creative partnership with BMF after less than two years. The move comes as part of a $100 million cost reduction program under new CEO Jayne Hrdlicka.
The agency departure is not the only marketing exit. Chief marketing officer Josie Brown left the business last month. GM of marketing and creative Katie Dally departed in September. Former CMO Jo Rose left in November 2024. That is three senior marketing leaders gone in 18 months.
BMF won the Endeavour account in 2024, taking over from M+C Saatchi and Thinkerbell. The current agency arrangements remain in place until the end of FY26. Endeavour is now reviewing its creative roster.
Endeavour Group's cost reduction target across administration, procurement and marketing. The marketing function is being rebuilt from scratch.
The $100 million savings program spans centralised administration, procurement and marketing. Hrdlicka, who took the CEO role this year, is focused on profitability and returns. That language tells you everything about where marketing sits in the priority stack.
This is not unique to Endeavour. Across Australian retail, marketing functions are being flattened during cost cycles. The pattern is consistent: new CEO arrives, announces efficiency program, marketing budget gets trimmed, CMO role gets downgraded or eliminated, agency relationships get reset. The problem is that these cuts are rarely reversed when conditions improve.
For BMF, the loss stings. Endeavour was a flagship account. Combined with the Westpac departure earlier this year (the bank moved to a project-based model), BMF parent company Enero Group is navigating a difficult stretch. Enero's share price has been volatile, though it showed some improvement this week despite the client losses.
Why it matters
Endeavour operates two of Australia's most recognised retail brands. The marketing decisions it makes ripple through the agency ecosystem and set expectations for other ASX-listed retailers.
When a business of this size strips out its marketing leadership and creative partnerships during a cost cycle, it signals that marketing is being treated as a discretionary expense rather than a growth investment. That is a strategic choice with long-term consequences. Brand equity erodes slowly, then all at once.
For agencies, the lesson is uncomfortable but important. Two-year creative partnerships are becoming the norm, not the exception. The days of decade-long agency relationships are over for most listed companies.
What to do about it
If you are an agency, diversify your revenue base. No single client should represent more than 15 to 20% of your income. The Endeavour exit is a reminder that even recently won accounts can evaporate.
If you are a marketing leader, document the commercial value of brand investment in language the CFO understands. When cost cuts come, the functions without a clear P&L contribution are the first to go.
If you are a brand manager at Endeavour or a similar retailer, prepare for a period of uncertainty. Creative roster reviews take 3 to 6 months and the interim period is where brand consistency tends to slip.
Watch the Enero Group share price. The market is pricing in the BMF client losses but the underlying agency business remains profitable.
Marketing is the easiest line item to cut and the hardest capability to rebuild. Endeavour is about to test that thesis.
