Why The Body Shop failed

WE ARE in an era of brand activism and conscious consumerism. More than 70 per cent 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.