What happened to sway The Body Shop off course so dramatically? And is there hope for the future of the chain? For the millions who rely on the chain’s products, its ethics, and even as a livelihood, there’s hope that it will pull through.
The Body Shop, which started as a small green shop in 1970s Brighton, U.K., before evolving into a global beauty empire, has long been regarded as a pioneer in ethical, cruelty-free beauty. This reputation seemed to be cemented again last year when it announced that it had become the first global beauty brand to go completely vegan. The chain’s CEO Ian Bickley said at the time that its team had been working “tirelessly” to reach the milestone. But now it seems that the groundbreaking achievement wasn’t enough to save The Body Shop’s future. The chain, which was founded by the late Dame Anita Roddick, was forced to call in administrators in February. And in the last few weeks, things have seemingly gone from bad to worse, when it announced it would be ceasing all of its operations in the U.S. and closing dozens of stores in Canada.
What happened to The Body Shop?
The Body Shop was once one of the most successful ethical beauty businesses in the world. Floated on the London Stock Exchange for £80 million in 1984, it was famed for its commitment to ethical ingredient sourcing and stance against animal testing. But its journey hasn’t always been smooth sailing.
In 2006, The Body Shop prompted an outcry from its loyal customers when it sold to French multinational L’Oréal for £652 million. L’Oréal wasn’t then, and still isn’t, certified cruelty-free. Growth slowed down for The Body Shop, and it moved to Natura & Co in 2017 before being sold to Aurelius, a German private equity firm, at the end of last year.
This inconsistency in ownership, and as a result, brand identity, is likely partly to blame for the situation the chain now finds itself in. But it shouldn’t be ignored that retail, in general, is going through a difficult time at the moment. Since Covid, several British brands have collapsed, including the fashion giant Arcadia Group.
But it’s also worth noting that The Body Shop’s ethical stance just isn’t that groundbreaking anymore, and this likely also hindered sales. In the 1980s, animal testing was the norm in the cosmetics industry, and the beauty chain stood out for its refreshing stance against the practice. But now, ethical consumers have many beauty brands to choose from. Lush, for example, has a similar approach to The Body Shop, but it has taken things a step further with its continued commitment to plastic-free packaging and speaking up on social justice issues. Other beauty giants that are also cruelty-free now include Charlotte Tilbury, Garnier, Elf, and Milk Makeup — the latter two are also vegan.
“While The Body Shop continues to stand by its ethical and cruelty-free brand values, these claims have become industry standards, weakening The Body Shop’s point of difference,” Tash Van Boxel, GlobalData Analyst, told the Independent. “Indeed, not only are brands now offering products with similar claims, but they also bring more to the table to attract shoppers.”
Is there hope for The Body Shop yet?
The closure of The Body Shop impacts its employees and its customers, but also its fair trade suppliers. The chain has made a point of collaborating with people all over the world on ethical beauty ingredients, but now, these fair trade partnerships could be in jeopardy. According to the Guardian, many suppliers are now concerned that they could be left with hundreds of thousands of dollars worth of stock.
Many don’t have contracts with the chain, either. “We don’t have any debt, but for more than two years we have manufactured this oil ready to go. There is no contract. It is based on trust,” Gaston Vizcarra, president of Candela Peru, told the publication. Candela Peru works with around 400 local families across the Amazon rainforest to collect nuts for its clients. “We usually sell a certain volume but The Body Shop has not been buying for at least a year,” he added. “It has affected our capacity to work with producers and buy nuts from them.”
Time will tell if The Body Shop will survive, but there are glimmers of hope. Doug Putman, the Canadian billionaire owner of music retailer HMV, is reportedly considering a rescue bid for the chain, and British retailer Next has also allegedly approached administrators. For now, it’s just a matter of watching this space.
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