After going through a number of hands, The Body Shop is now again looking for a new owner.
👉 Background: The Body Shop is a skincare and cosmetics brand with around 3,000 stores worldwide. They originally started in the UK back in the 70's, with the idea that business could be a force for good. No animal testing, fair trade with third world countries, and a focus on human rights issues.
👉 What happened: The Body Shop has been through a number of hands: first it was sold to L'oreal, then Natura & Co., and now it's looking for a new owner... That's because of declining sales in their second quarter reports.
We're talking a drop of 12% year-on-year despite The Body Shop putting in the hard yards to improve their profit margin.
👉 What else: They've been struggling with profitability for years now as competition's gotten tighter.
💡Getting ahead of the curve is one thing, but staying ahead is another.
💡In the early days, The Body Shop stood out because of their sustainable approach and stance against animal testing. But then we saw brands like Lush and Aveda take off with ethically conscious products in the early 2000's. So, The Body Shop's "point of difference" became mainstream.
💡This led to consecutive quarters of losses and consecutive quarters of disappointed shareholders.
Sign up for Flux and join 100,000 members of the Flux family
