The DIY retailer, which is overhauling its direct strategy, is planning to step up its focus on customer relationship management and has held talks with a number of agencies since the end of last year. It previously used direct shops on an ad hoc basis.
Marketing has learned that the appointment of EHS will be confirmed in the next few days. The agency is understood to have been handed a brief to raise the profile of Homebase's loyalty scheme, Spend & Save, which has 3m members.
Homebase is planning major activity to support the loyalty scheme as it seeks to boost membership and increase its value to customers.
Sales promotion agency Meteorite is expected to continue its work for Homebase on a local level alongside EHS Brann.
The recruitment of EHS coincides with the imminent reappointment of Abbott Mead Vickers BBDO to Homebase's £24m advertising account, first tipped by Marketing at the end of last year.
Abbott Mead Vickers BBDO is expected to revise the retailer's position in an attempt to establish it as a more upmarket retailer.
'Men Behaving Badly' stars Leslie Ash and Neil Morrissey, who have fronted the DIY chain's advertising for the past six years, are expected to be phased out as part of the review.
Homebase has almost 300 outlets in the UK, with more than 1m customers a week.
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