Business Economics - Can Body Shop Thrive in a Recession?
Today's Observer carries an interview with the CEO of Body Shop, a business owned by Brazilian firm Natura which has weathered several storms in recent years and - having cut back on their store real estate during the pandemic - is now looking to expand once more even as recessionary clouds gather.
Perhaps they will benefit from people looking to buy affordable luxuries even when real incomes are dropping? Their commitment to sustainability which began under founder Anita Roddick is palpable and laudable. It is good to read a background story on a retailer whose glass is half full rather than half empty!
There is a wealth of business economics in here – from the palpable failures caused by the sale to L'Oréal some years back to the need for radical cost-cutting during the pandemic and the shift online. Sales have soared in the last year perhaps prompting Body Shop’s owners to put the business up for sale with a $1 billion price tag?
Boynton is planning to open about 30 more stores in the UK in the longer term, as commercial rents have come down by up to 30% in some locations, making new branches more viable – he is an optimist for the high street