The Body Shop announces UK store closures and job cuts in restructuring effort
In a move to revitalise its operations and restore financial stability, The Body Shop has announced plans to shut down up to half of its stores in the UK and streamline its head office, resulting in significant job losses.
Administrators FRP, tasked with overseeing the restructuring, disclosed that more than half of The Body Shop’s 198 UK stores will remain operational, with seven outlets set to close immediately.
Additionally, around 40% of head office roles, equating to approximately 400 full-time staff positions, will be eliminated.
The decision to reduce the store footprint and restructure the head office comes after a period of sustained unprofitability for the ethical beauty chain.
FRP emphasised that the current mix of stores is no longer sustainable, necessitating a shift in focus towards online sales channels and wholesale strategies to align with industry standards and ensure financial viability.
The restructuring efforts follow the recent sale of The Body Shop’s struggling businesses in mainland Europe and parts of Asia. The closures and job cuts are aimed at creating a more agile and financially sound business model.
Despite the store closures, The Body Shop reaffirmed its commitment to its franchise and wholesale partners, considering them essential for future success. The move is part of a broader strategy to re-energise the brand and position it as a modern, dynamic player in the beauty industry.
The affected stores, including high-profile locations in London, will cease operations immediately, while the remaining outlets and the company’s online platform will continue to operate throughout the restructuring process.
The Body Shop, originally founded by Dame Anita Roddick and known for its ethical and sustainable practices, has faced increasing competition in recent years, compounded by challenges such as aggressive discounting and changing consumer preferences. The restructuring aims to address these issues and secure the brand’s long-term viability.
The decision marks a significant development in the retail landscape, signaling the first major failure in the UK retail sector in the current year. As the restructuring unfolds, stakeholders will closely monitor The Body Shop’s progress in navigating these challenges and returning to profitability.
