The Body Shop’s shortfalls rooted in heightened global competition

This is underscored by Aurelius’ acquisition of the brand from Natura & Co.

The Body Shop’s global performance has been undercut by increased competition in the thriving health and beauty market.  

In a report by data analytics company GlobalData, while the global beauty products retail has lagged, other retailers like Boots and Superdrug have outperformed in the market and taken advantage of the amplified demand in the beauty sector.

The Body Shop furthers its innovative push for more ethical and cruelty-free products. However, other brands have made beauty products with similar yet accessible claims, deterring The Body Shop’s point of difference for shoppers.

Much of the underperformance is attributed to the collapse in administration of The Body Shop UK, due to unprofitability and evaluation of staff. This is furthered by the acquisition of Aurelius of the brand from Brazil’s Natura & Co.

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Whilst the UK health & beauty market has risen to 7.1% in 2023, consumers have relied on inexpensive beauty items to avert cost-of-living concerns.

However, Asian operations of The Body Shop remain unaffected by the restructuring of UK operations, with Indian stores and others remaining operational.

“The Body Shop’s success in the past was down to its distinct brand identity, with its focus on natural ingredients and fairtrade products being at the fore of its marketing, making the retailer ahead of its time,” the report said.