Skincare Seller, The Body Shop, Loses Competitive Edge as Brazilian Owner Decides to Sell

The Body Shop, owned by a Brazilian company, has been put up for sale due to lackluster sales.

Natura, the Sao Paulo-based personal care cosmetics group that also owns Avon and Aesop, decided to abandon The Body Shop due to its underperforming sales. However, the company has not guaranteed a sale.

This announcement has raised concerns that The Body Shop may be acquired by a private equity firm.

In the second quarter of 2023, The Body Shop experienced a 12% decline in sales, amounting to £130 million, which can be attributed to the struggles faced by the High Street.

Campaign: Lily Cole for The Body Shop which has been put up for sale by its Brazilian owner

Natura acquired The Body Shop from L’Oreal in September 2017 for £880 million. The brand, which was founded by Anita Roddick in 1976, became popular among the middle classes.

Anita Roddick, who passed away in 2007 at the age of 64, prioritized environmental causes and offered discounts to customers who brought back empty containers for refills.

In recent years, The Body Shop has focused on social causes such as period poverty and refugee rights, as well as advocating for voting rights for 16-year-olds. However, analysts believe that the brand has lost its competitive edge.

Sophie Lund-Yates from Hargreaves Lansdown stated that animal testing is now universally avoided in the beauty industry, leaving The Body Shop with fewer marketing strategies to attract shoppers.

Retail expert Wizz Selvey also noted that the brand is falling behind as the demand for natural skincare products declines and consumers seek out lab-made products using biotechnology.