The UK-based cosmetics company, The Body Shop, has ceased all operations in the United States and is set to close numerous Canadian store locations after filing for bankruptcy, according to CNN.

US Operations Closure

In an official announcement earlier this month, The Body Shop confirmed the cessation of its US subsidiary’s operations, effective March 1. This decision has led to the closure of all US-based stores.

Canadian Store Liquidation

The Body Shop revealed that 33 out of its 105 stores in Canada will initiate liquidation sales immediately. Additionally, online sales via Canada’s e-commerce platform will cease, although all Canadian locations will remain open for the time being.

Impact of Economic Factors

Reports indicate that The Body Shop, like many traditional retailers, has been adversely affected by high inflation in recent years. Operating primarily out of malls and targeting the middle class, the company faced challenges amid changing economic dynamics.

Brand Philosophy and Legacy

Founded in 1976 by human rights activist Anita Roddick, The Body Shop gained renown for its products marketed as natural, sustainable, ethical, and cruelty-free. It was among the first companies to prohibit animal testing for many of its products, earning recognition for its commitment to ethical practices.

Ownership Changes and Recent Challenges

Over the years, The Body Shop changed ownership multiple times. Acquired by cosmetics giant L’Oreal in 2006 and later sold to Brazilian company Natura in 2017, the brand faced financial difficulties in recent years despite its legacy and global presence.

Recent Decline and Acquisition

Ailing in recent years, The Body Shop experienced a 13.5% year-over-year decline in 2022, according to a report by Natura, its parent company. The impact of the COVID-19 pandemic, which initially boosted direct-to-consumer channels, waned, contributing to a decline in sales numbers.

Conclusion

With its recent acquisition by asset management group Aurelius for approximately USD 266 million, The Body Shop faces a period of transition amid challenging market conditions. Despite its rich legacy and commitment to ethical principles, the company’s financial struggles underscore the competitive nature of the cosmetics industry and the evolving dynamics of consumer preferences.