The Body Shop Ceases Operations in the US and Announces Store Closures in Canada

The Body Shop has closed all its operations in the US and will be shutting down multiple store locations in Canada as it goes through bankruptcy proceedings.

In a recent announcement, the UK cosmetics company revealed that its US subsidiary has ceased operations as of March 1. Additionally, 33 out of its 105 stores in Canada will start liquidation sales right away. Online sales through Canada's ecommerce platform will also be discontinued. However, all Canadian stores will continue to operate for the time being.

Traditional retailers, such as The Body Shop, have been negatively impacted by high inflation in recent years. This is especially true for those that primarily operated in malls and catered to the struggling middle class.

The Body Shop, founded in 1976 in the UK by human rights activist Anita Roddick, is well-known for its natural, sustainable, ethical, and cruelty-free products. It was a pioneer in banning animal testing for many of its items. In 2019, the company achieved certification as a “B Corp,” which is awarded to businesses that uphold specific standards of transparency and environmental responsibility.

By 2023, The Body Shop had grown to over 2,500 retail stores across 80 countries and could also be bought online in over 60 markets.

Throughout its history, The Body Shop has been owned by different companies. In 2006, it was acquired by cosmetics powerhouse L’Oréal for over a billion dollars. Then, in 2017, it was sold to Brazilian company Natura for another billion dollars.

The brand has faced challenges in recent years, as noted in a report from Natura in early 2023. The Body Shop experienced a 13.5% decline in sales in 2022, a year that was described as difficult for the brand. Natura mentioned that the brand's direct-to-consumer channels, which had seen growth during the pandemic, returned to pre-pandemic levels, impacting sales figures.

In late 2022, The Body Shop was acquired by asset management group Aurelius for approximately $266 million.

CNN has reached out to The Body Shop and Aurelius for comment.

Editor's P/S:

The news of The Body Shop's closure in the US and partial closure in Canada is a sad reminder of the challenges facing traditional brick-and-mortar retailers in the digital age. The company's struggles highlight the impact of rising inflation and changing consumer preferences on businesses that primarily rely on in-person shopping. Despite its pioneering role in ethical and sustainable cosmetics, The Body Shop has not been immune to the economic headwinds that have plagued the retail industry.

The Body Shop's journey through multiple ownerships and the recent acquisition by Aurelius raise questions about the future of the brand. While Aurelius is known for acquiring distressed assets and turning them around, it remains to be seen whether the company can restore The Body Shop to its former glory. The closure of stores in the US and Canada may indicate a shift in the brand's strategy, with a focus on online sales and a smaller physical footprint. As The Body Shop navigates these challenges, it will be crucial for the company to adapt to the evolving retail landscape and find ways to connect with consumers in a meaningful and sustainable way.