L'Oreal-owned The Body Shop set for global expansion

by Sarah Woods, Brand Republic 03-Oct-06, 08:50

LONDON - The Body Shop could more than double in size internationally from 2,000 to 5,000 stores 'in a few years', following the purchase of the cosmetics retail brand by cosmetics giant L'Oreal.

In an interview with the Financial Times, L'Oreal chief executive Jean-Paul Agon said he was looking at the Chinese market, while the Body Shop had recently launched in India. He also saw Brazil, Argentina and Chile as potential markets for the brand around the world.

In March, The Body Shop agreed to a £652m takeover by L'Oreal, which promised to leave the ethical cosmetics retail brand and its business intact and help it grow internationally. At the time of the takeover, there was a fear that L'Oreal would dump its ethical heritage.

The Body Shop co-founder Dame Anita Roddick endorsed the sale and received around £130m for the 18% stake she and her husband and co-founder Gordon Roddick own.

Immediately after the buy-out, The Body Shop's reputation suffered with public perception of the company falling, according to ratings measured by YouGov.

In contrast to principles held by The Body Shop, L'Oreal has been criticised in the past for animal testing by animal right charity Peta. However, Agon says globally "the business works with a very high degree of ethics" and is looking for alternatives to the testing of new chemical ingredients on animals. The firm stopped testing on animals in 1989.

Agon said: "The big ambition in terms of animal testing is to make animal testing disappear completely and forever in the beauty industry."

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.