Following the announcement of its 2016 annual results, reports have surfaced that L’Oréal may be considering offloading The Body Shop due to slowing sales.
Founded in 1976 by Anita Roddick, The Body Shop was bought by the French cosmetics company in 2006 for £652.3 million. But with so many brands claiming natural and ethical credentials, the high street bodycare shop has lost its USP and saw total sales fall 4% during the first nine months of 2016, to €600 million. This represents just a fraction of L’Oréal’s total sales of €19 billion for the same period.
The company has not confirmed the reports, but in the annual results, states: ‘As part of this brand portfolio optimisation, it has been decided to explore all strategic options regarding The Body Shop’s ownership in order to give it the best opportunities and full ability to continue its development. No decision has been taken so far.’