The Body Shop

The Body Shop is a brand that has outlets in almost all Indian metro cities in several malls and retail establishments. But now the UK-based cosmetics company which was once a trailblazer has filed for bankruptcy. Weeks after the closure of nearly half of its stores in the UK, the Body Shop has seized all operations in the United States. The company is also downsizing its presence in Canada where it will be liquidating 33 of its 105 stores and stopping online sales through e-commerce stores. A reason for this is high inflation in recent years which has affected traditional retailers who operate out of malls and they are predominantly aimed at the middle class. Another is that while the Body Shop was extremely popular in the UK and US in the 80s and 90s, its popularity waned in recent years with heated competitors from rivals in the natural beauty market. The boom internet sales has also affected brick and mortar retail so the Body Shop's cons The Body Shop was founded in 1976 by h It is known for products that it markets as natural, ethical and cruelty free. It was also one of the first companies to prohibit testing on animals for many products. By 2023 it had over 2,500 retail locations in over 80 countries but many were unprofitable. Ownership of the brand changed hands three times in seven years. In a report in early 2023, Natural which then owned the company noted that the Body Shop was facing headwinds. It declined over 13% year on year in 2022. In November 2023, the Body Shop was sold to asset management group Aurelius. They paid just a fifth of the price that Natural had paid for it to Laurel in 2017. The future of the Body Shop will be decided in the UK where the company is headquartered. The brand is expected to survive in some form though with far fewer shops.