Body Shop to sell parts of its Europe, Asia business, UK unaffected

The Body Shop owner Aurelius is to sell parts of the British ethical beauty retailer’s ops in Europe and Asia. 

Aurelius, the Germany-based private equity firm that bought The Body Shop from Brazil’s Natura &Co for £207 million in November, has signed an agreement with “an international family office to sell its business in most of mainland Europe and in parts of Asia” as it moves towards “delivering a strong turnaround strategy”, reported Retail Week.

Assuming the report its accurate, it’s an undeniably bold move and shows its new owner taking decisive action to try and turn around a business that has struggled for some time under several owners.

While details of the deal haven’t been disclosed, the sale includes both physical and digital operations. The sections being sold make up around 14% of the brand’s external global sales. It won’t impact UK operations or its global head franchise partners operating at a country or territory level, the report noted. 

The Body Shop also said the move would allow it to prioritise “strategically important markets” as it seeks to “create a modern and dynamic beauty brand”.

The firm “will also focus on more effectively reaching customers by strengthening digital platforms, developing new sales channels, and via differentiated retail experiences”.

The statement added: “The announced sale is another decisive step towards delivering a strong turnaround strategy, supported by the right structure. The ambition is to create a modern and dynamic beauty brand, relevant to customers and able to compete for the long term.”

The sale coincides with The Body Shop’s UK and Ireland managing director Maddie Smith’s departure from the business. However, the retailer said Smith “took the decision before Christmas to leave [and] is not connected to today’s news about the sale agreement, which does not include the UK.

“Maddie will be at The Body Shop [until] the beginning of April, supporting the ongoing transformation and leadership transition.”