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Following its recent entry into administration, The Body Shop, a renowned cosmetics and skincare brand, has initiated a series of store closures in the UK as part of its restructuring efforts to achieve financial stability. The closure of the flagship store on Oxford Street in central London marks the beginning of this process, with seven stores already shuttered and more closures anticipated shortly. Over half of The Body Shop’s 200 stores are slated for closure.
In addition to store closures, significant workforce reductions are expected, particularly at The Body Shop’s head offices, where staff numbers are anticipated to decrease by 40 per cent. The number of job cuts at store locations remains unclear as the restructuring unfolds.
This development transpired just one week after The Body Shop fell into administration following its acquisition by the private equity firm Aurelius. Administrators cited an extended period of financial challenges under previous ownership, exacerbated by a challenging retail landscape. In response, The Body Shop has taken prompt actions in the past month, including the closure of The Body Shop At Home and the divestment of its business in most of Europe and parts of Asia. Focusing on restructuring its UK operations is deemed the next crucial step in the company’s recovery process.
Before entering administration, The Body Shop boasted a presence with over 200 stores across the UK and a workforce of more than 2,500 employees nationwide.
Due to a sustained decline in profitability over the past few years, The Body Shop is substantially reducing its store count.
After a comprehensive assessment of The Body Shop’s UK business, administrators have indicated that the current combination of stores is no longer sustainable due to years of financial challenges. The administrators stated, “A reduced store footprint will coincide with a renewed focus on the brand’s products, online sales channels, and wholesale strategies, aligning the brand with industry peers and facilitating a return to financial stability.” This strategic shift emphasises the brand’s core products while optimising online sales and wholesale channels to align with industry trends and enhance financial resilience.
