The Body Shop, a renowned retailer of ethical hair and skin products, has recently announced its decision to shut down nearly half of its stores in the UK. This move comes as the company faces financial challenges and aims to restructure its operations. The closures will result in job losses and a reduced store footprint, with a renewed focus on online sales channels and wholesale strategies.
The Body Shop will immediately close seven stores, including four in London. The closures are part of a restructuring plan overseen by administrators FRP Advisory. The exact number of job losses resulting from the closures has not been specified, but it is estimated that around 40% of roles at the company’s London headquarters will be cut. The administrators have concluded that the current store portfolio mix is no longer viable, leading to the decision to reduce the store footprint.
The closures will result in a significant reduction in the number of stores in the UK, with more than half of the 198 stores expected to remain open after the restructuring. The company’s global franchises in the Middle East, Asia, Africa, and the rest of Europe are not affected by the closures. The Body Shop’s Ambassador Programme and its original direct selling network, The Body Shop at Home, will also be closed as part of the restructuring.
The Body Shop has been facing years of unprofitability, prompting a full evaluation of its UK business. The restructuring aims to re-energize the brand and support a return to financial stability. The company plans to focus on its products, online sales channels, and wholesale strategies to drive growth.
RTM Watch’s Take
The Body Shop’s decision to shut down nearly half of its UK stores reflects the challenges faced by retailers in an evolving market. The company’s focus on online sales channels and wholesale strategies aligns with the growing trend of e-commerce and changing consumer preferences. While the closures may result in job losses, the restructuring aims to ensure the long-term viability and financial stability of the brand. The Body Shop will need to adapt to the changing retail landscape and effectively communicate its values to remain relevant to its audience.
