The Body Shop to reduce store estate by almost half as part of restructuring
FRP said a reduced store footprint will coincide with a renewed focus on the brand’s products, online sales channels and wholesale strategies
FRP Advisory has announced that it expects keep “more than half” of the The Body Shop’s 198 store open at the end of its restructuring plans amid news it is closing seven stores today (20 February) in a bid to secure the future of the retailer.
After years of unprofitability and following a full evaluation of The Body Shop’s UK business, joint administrators Geoff Rowley and Alastair Massey have concluded that the current store portfolio mix is no longer viable.
It is expected that at the conclusion of the restructuring, more than half of The Body Shop’s 198 UK stores will remain open.
The seven stores immediately impacted are the London stores in Surrey Quays, Oxford Street Bond Street, Canary Wharf and Cheapside, as well as the shops in Nuneaton in Warwickshire, Ashford Town Centre in Kent, and Bristol Queens Road in Bristol.
FRP said a reduced store footprint will coincide with a renewed focus on the brand’s products, online sales channels and wholesale strategies, bringing the brand in line with industry peers and supporting a return to financial stability.
Following the earlier sale of loss-making businesses in much of mainland Europe and parts of Asia, and to support a simplified business, The Body Shop will also restructure roles in its head office to align with this forward-looking strategy and more nimble, financially viable model.
The head office headcount is expected to reduce by approximately 40%, to a future headcount of over 400 full time employees. The joint administrators have also decided The Body Shop Ambassador programme will close.
FRP said that stabilising and strengthening the central core will also support The Body Shop’s international strategy, with global head franchise partners and wholesale partners in Asia, Middle East and Europe a cornerstone of future success.
It added: “The swift action will help re-energise The Body Shop’s iconic brand and provide it with the best platform to achieve its ambition to be a modern, dynamic beauty brand that is able to return to profitability and compete for the long term.”
