Skincare retailer in potential sale
By Cat Hage | 29th August 2023
The Body Shop Brazilian owner Natura & Co, is considering a possible sale of the UK skincare retailer after struggling to revive its fortunes post-pandemic.
Gloucestershire has The Body Shop stores in Cheltenham's Regent Arcade, on Eastgate Street in Gloucester and Cricklade Street in Cirencester.
The beauty conglomerate said it had "recently authorized its management to explore strategic alternatives for The Body Shop," which it acquired from L'Oréal in 2017 for £857m.
A sale of the natural beauty retailer - valued at £405m - is the most likely outcome, according to J.P Morgan analysts, following the sale of its Aesop brand to L'Oréal for £2bn back in April (source: Retail Gazette).
Natura has grown rapidly in recent years through a series of high-profile acquisitions; however, the beauty group has faced difficulties with profitability, posting six consecutive quarters of losses.
In a bid to return to profitability, the group has been looking for "discipline" and deleveraging.
Executives told analysts earlier this month that The Body Shop had weighed on the company's bottom line as consumers shifted spending following the pandemic.
To reverse the sales slump, the company has tried to boost digital sales and revamped its product line to focus more on skincare.
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