UPDATE: Dentsu ANZ has commented on the sudden exit of another senior leader amidst its ranks, confirming that executive creative director Sarah McGregor is no longer with the business.

“This is a sensitive and isolated incident. We expect our people to follow our code of conduct and have a duty of care to provide a safe environment for those that chose to work with us. We tolerate nothing less,” a dentsu AU spokesperson told Mi3.

McGregor had been with Dentsu Creative since 2022 and was one of the first major hires made by Kirsty Muddle in her then-remit as chief creative officer. Muddle, now holding a group-wide role as CEO of product and practice, had previously crossed paths with McGregor during their time at indie creative shop Cummins & Partners.

For her part, McGregor – also known for her work in championing female creatives via mentoring network The Aunties – appeared to be on positive terms with her former employer.

“Dentsu Creative was a fantastic opportunity to help build a department and a thriving creative culture,” she told Mi3. “I’m really proud of the work and the people and I’m looking forward to the next chapter.”  

McGregor’s departure comes in close succession to news last week that Merkle president Kim Douglas had left the agency group just five months into the role over a code of conduct breach, perhaps signaling a crackdown on culture by the Japanese holding company.

"As a business we require all employees to behave responsibly, respectfully and in compliance with our code of conduct which defines the way we behave and our expectations of our people. This helps ensure we build a positive and respectful business culture where everyone can thrive," a Dentsu spokesperson said of Douglas’ exit.

Douglas’ remit will be absorbed, at least for now, by Muddle, as part of her capacity as product and practice chief – a remit she took on following Dentsu ANZ’s major structural overhaul earlier this year.

Kmart pitches creative

McGregor’s exit comes just as the group faces a fight to keep the Kmart creative business. The retailer is understood to be taking its account to pitch just two years after reuniting with the agency in 2022 – Dentsu Creative’s second run at the business since 2011, after being briefly switched out for DDB in 2020.

Neither Kmart or Dentsu commented on the status of the pitch – and the business was positioned as a standout performer within parent company Wesfarmer's most recent annual results, delivering earnings growth of nearly 25 per cent to $958 million and revenues exceeding $11 billion, though CEO Rob Scott attributed most of that growth to long-term supply chain and sourcing innovation, enabling it to deliver cheaper own brand products.

Should Dentsu be displaced, it would be another account in the loss column, following Publicis taking the Toyota retail business in June.

However, Adobe's global appointment of Dentsu Creative as its digital media agency of record last month would soften any potential blow. The agency’s local team is understood to have played a significant hand in securing the account – worth in the realm of four and half times that of the Kmart business. 

Elsewhere, Dentsu Creative is finalising major upcoming campaigns for The Iconic, NIB and RMIT.