The Body Shop is in trouble: more and more stores are closing

By: Trademagazin Date: 2024. 03. 12. 10:56

The British cosmetics company, The Body Shop, has reached another chapter: due to high inflation and the rise of online sales, it is closing a large part of its American and Canadian stores, CNN reported. After the United Kingdom, their stores are also closed in America and Canada, and the company has initiated bankruptcy proceedings.

In the United States, the bankruptcy process that went into effect on March 1 involves the closing of all American stores and the liquidation of several Canadian stores. In Canada, 33 out of 105 stores began immediate liquidation and online sales have also stopped. Rising inflation in all countries adversely affects traditional retail, especially stores located in shopping centers that rely on middle-class customers.

In the mother country, the United Kingdom, the wave of closures started earlier: seven stores closed their doors in February. The negative effects drove the company towards bankruptcy.

The Hungarian units, on the other hand, are not at risk, as they operate in a franchise system, so they operate independently and are not affected by the wave of global closures.