The Body Shop: Failing in the UK but thriving in India with “consistent growth”
27 Feb 2024 --- Amid financial turmoil, The Body Shop UK faces store closures, product excess and taxpayers possibly on the hook to foot the bill for laid off workers.
The latest twist entails UK high street giant Next reportedly considering a rescue bid for the troubled UK company while the beauty supplier continues to thrive in India, emphasizing that the company’s newly appointed joint administrators from FRP Advisory will focus on fostering partnerships in Asia, Europe and the Middle East.
“A reduced store footprint will coincide with a renewed focus on the brand’s products, online sales channels and wholesale strategies, bringing it in line with industry peers and supporting a return to financial stability,” stated the FRP administrators regarding the closure of 200 stores, close to half of all outlets in the UK.
Shriti Malhotra, group CEO, Quest Retail, The Body Shop India, comments: “The news that’s been reported relates to The Body Shop UK only. This administration process does not impact The Body Shop India as it is a Head Franchise Market. All our stores are open as usual. Customers can shop in our stores and online for their favorite products.”
Malhotra maintains, The Body Shop remains the most significant international beauty retailer in India, with 200 locations and catering to more than 1500 cities online.
“India is one of the top markets for The Body Shop globally, and our consistent growth reflects the popularity of The Body Shop and the immense opportunities.”
The Body Shop remains the most significant international beauty retailer in India
No impact on India
In light of The Body Shop’s ongoing trouble in the UK, The Body Shop India highlights that it operates as a Head Franchise Market, noting that the administrational changes taking place in The Body Shop’s UK business would not affect it or any of its other Global Head Franchise Partners.
The FRP administrators emphasize the importance of the company’s global franchisees for long-term international growth and expressed a willingness to support its international strategy by ensuring the stability of the central core business.
“The Body Shop India will continue to scale-up and focus on omnichannel expansion while leveraging newer opportunities in retail, quick commerce and high convenience formats so that the strong brand affinity built in India is well supported by easy and expansive access to our customers,” Malhotra asserts.
The Body Shop India was launched in 2005, and is currently a top-five market for the company, as well as the fastest growing.
Rescue bid
The FRP Advisory administrators appointed by the directors of The Body Shop were reportedly contacted by Next with a proposal to purchase any assets of the chain.
The retailer recently purchased Cath Kidston, Made.com and Joules, has large stakes in Jojo Maman Bébé and Reiss and has joint venture agreements with Victoria’s Secret and Gap.
One potential hurdle could be The Body Shop IP and brand, as Aurelius, the company owner, is believed to have secured these assets.
Aurelius purchased The Body Shop from Natura &Co last November for £207 million (US$258 million).
By Milana Nikolova
