Following the news that Aurelius has bought The Body Shop in a £207m deal; Tash Van Boxel, analyst at GlobalData, offers her view: “The Body Shop’s recent struggle has been driven by consumers trading down to more affordable retailers, casting aside sustainability and ethical claims in favour of value for money and lower price points. If new owner, Aurelius, hopes to improve the fate of The Body Shop, the focus must be on broadening its pricing architecture to stem the flow of consumers switching away to value players and discounters.
Source: GlobalData, November 2023
Van Boxel continues: “The Body Shop has not always faced such difficulties as it excelled during the pandemic, as consumers pampered themselves, investing in more premium products. Indeed, amid the pandemic, The Body Shop’s market share peaked at 1.4% in 2020. However, this demand has now waned, as the retailer has been unable to maintain momentum, dropping to 0.8% market share in 2022, and expected to remain flat in 2023.
“Aurelius should focus on widening the appeal of The Body Shop brand via partnerships or concessions with other retailers such as John Lewis & Partners. This will enable the retailer to reach a more varied audience and ensure that it can take advantage of the ongoing demand in the sector.”
