Body Shop UK sales fall
Decision not to discount sees like-for-likes drop
June 26 2003
A decision not to discount products in the currently tough UK market saw sales at The Body Shop fall by eight per cent in the first quarter of its current financial year.
Body Shop chief executive Peter Saunders told shareholders at the company’s annual meeting that worldwide retail sales were flat in the quarter, with comparable store sales down 3 per cent year-on-year.
Total group turnover increased by 5 per cent, with a good performance by direct sales business The Body Shop at Home.
Saunders said: “In our preliminary results announcement, we stated that the economic outlook throughout the world and in many of the countries in which we trade was weak. We continue to face a challenging retail climate that has led to a decline in customer traffic.”
Body Shop said an eight per cent decline in both total and like-for-like UK sales could be partly explained by a significant reduction in discounting compared to the previous year, as well as more difficult trading in major city centres such as London.
Positive sales growth was seen in the USA, the Middle East, France, the Nordic countries, Australia, Korea and most parts of South East Asia, but trading was also difficult in Germany, Southern Europe, Japan and Canada.
Saunders said: “Our focus remains on improving operational efficiencies. Given the difficult
trading environment, our plans remain conservative, and we anticipate a modest improvement in performance for the year as a whole.”
