The Body Shop Ceases its US Operations
The Body Shop has ceased its U.S. operations and is closing dozens of locations in Canada amid deepening financial struggles for the British beauty and cosmetics chain. The Body Shop's U.S. arm ceased operations on March 1, according to a company announcement from earlier this month. And the brand's Canadian subsidiary commenced liquidation of 33 closing stores as part of wider restructuring proceedings. These closings arrive just weeks after the U.K.-based retailer appointed insolvency administrators set to consider “all options to find a way forward” after years of financial struggles.
Total Retail's Take: The winding down of The Body Shop's business in North America has begun. The retailer has faced significant financial challenges and is reducing its global physical footprint in an effort to remain viable in its home market, the UK. Even in the UK, The Body Shop is planning to close 82 of its 198 store locations in a cost-saving measure.
Recognized as a trailblazer in the arena of ethical business practices, The Body Shop has been sold several times in recent years, including to L'Oreal in 2006, then to Natura in 2017, and most recently to private equity firm Aurelius in 2023. With increased competition in the market, including online from brands selling direct to consumer as well as the emergence of powerful players in the beauty space such as Ulta and Sephora, The Body Shop failed to gain traction in the U.S. Exiting the North America market and investing resources in restoring the business in the UK where it has an established presence would appear to be the more prudent path forward for The Body Shop.
