The Body Shop shouldn’t have failed in an age when consumers want activism from their brands. What happened?

By Zoe Lee, Cardiff University, Amanda Spry, RMIT University, Jessica Vredenburg, Auckland University of Technology

We are in an era of brand activism and conscious consumerism. More than 70% of consumers expect brands to publicly stand for sociopolitical issues.

And more than half of Australians consider sustainability an important purchasing criterion. Experts also predict a major shift in consumer attitudes with sustainability evolving from a “nice-to-have” to a baseline requirement.

In this climate, The Body Shop – promoted as a global beacon of ethical retailing – shouldn’t have failed. However, in February, it entered administration in the United Kingdom. The following month, The Body Shop in the United States and Canada filed for bankruptcy.

The Australian subsidiary remains profitable, boasting about 100 stores. But it is reportedly facing a “cash flow crisis” with “unsustainable levels of debt” following the collapse of its UK parent company last month.

The Body Shop was once a ground-breaker

Founded by UK businesswoman and human rights activist Anita Roddick in 1976, The Body Shop was a trailblazer of cruelty-free products, fair trade and environmental sustainability.

It was as well known for its advocacy and ethics as its flagship products, including White Musk scent, Dewberry oil and peppermint foot scrub.

The brand helped change 24 laws in 22 different countries by mobilising customers to campaign against animal testing in cosmetics.

However, The Body Shop’s trajectory over the last two decades diverges sharply from its founding ethos.

First sold in 2006 for A$1.26 billion to cosmetics and personal care company L'Oreal, the brand was abandoned by many customers because of perceived betrayal of its core values.

In 2017, The Body Shop was bought by Brazilian cosmetics giant Natura for A$1.7 billion, which its CEO Ian Bickley promised would start “a new chapter”. Natura then sold the brand to asset management company Aurelius in 2023, just three months before its UK collapse, for only A$399 million.

This signalled significant value decline and raised questions about the viability of the brand worldwide.

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