Remember the days of walking through the mall and browsing deliciously scented lotions and fragrances in The Body Shop? If you live in the United States, those days are over.
The Body Shop was founded back in the UK back in 1976 with the goal of making cruelty-free, sustainable and natural products that are not tested on animals. Since then, the company had traded hands several times. In 2006, L’Oréal bought The Body Shop. Then in 2017, the company was sold to Natura. Then, in late 2023, Aurelius bought The Body Shop.
CNN reports that in 2023 The Body Shop had 2500 store locations throughout 80 different countries. In addition, the store had their products for sale online in 60 different markets.
Now, in 2024, Aurelius has announced some major changes coming to The Body Shop. All U.S. locations are currently closed, but they’re not stopping there. They also plan to cut back on their presence in Canada.
According to a news release, The Body Shop Canada Limited will be having liquidation sales at 33 of its Canadian stores, and these sales are starting immediately. The company will also be completely shutting down its online presence in Canada. In addition, as of March 1, 2024, The Body Shop is no longer operating in the United States.
According to Refinery29, in 2023, The Body Shop was operating 61 stores in the United States. That means a lot of people lost their jobs recently.
Before selling the company, Natura mentioned that The Body Shop was struggling to stay afloat. In early 2023, Natura explained that in 2022 The Body Shop had a year-over-year decline of 13.5%.
But why is a once successful company no longer successful? According to journalist and beauty brand consultant Louise Whitbread, it’s because the company lost consumer trust when they were bought and sold, starting with the sale to L’Oréal. Consumers who once trusted the company for being cruelty free, no longer believed that was what the company stood for. Whitbread explained, “The ethics of a brand’s behavior, including everything from workplace welfare to who is an investor or the parent company, are expected to align with its core values.”
Whitbread added that once loyal consumers felt that The Body Shop sold out when L’Oréal took over control. She explained, “We also know millennials and Gen Z lack brand loyalty, so if a company is involved in a ‘scandal’ or it doesn’t respond to consumer criticism well, it’s all too easy for customers to move on and not look back.”