Natura eyeing purchase of The Body Shop in Brazil

Natura confirmed that it is participating in the process of purchasing The Body Shop in Brazil, which belongs to L’Oreal. 

“In the normal course of its negotiations, the company is constantly evaluating opportunities that can include investments, acquisitions or other operations. In this sense, the company informs that it is participating in the initial stages of an assessment involving any transaction related to The Body Shop,” said the director of finance and investor relations, José Roberto Lettiere.

The response came after questioning by CVM (Securities and Exchange Commission) and the Superintendence of Corporate Marketing of BM&FBovespa about rumors that circulated last week about the possibility of Natura purchasing The Body Shop. 

Regarding the possibility of the deal, the company emphasized that nothing is closed yet. “The company advises that it can’t confirm that such a process will result in the realization of a deal of any nature, and that, at the moment, there is no binding commitment involving the eventual deal related to The Body Shop.”

Natura's interest could be part of a strategy from the brand to increase its physical retail footprint. The brand currently has six retail locations. Products from the brand’s Sou line are also sold in pharmacy chains. 

New leadership

The Body Shop arrived in Brazil in October 2014, as a joint venture with the Brazilian chain Empório Body Store. In February of 2016, it acquired 100 percent of the Brazilian company, expanding the brand’s presence in the country. The franchise chain has in total more than 123 outlets (including kiosks and traditional stores) and more than 3,000 stores in 66 countries. 

The company’s leadership changed recently, with executive Nathalie de Gouveia as the new CEO of the company. She began at The Body Shop in 2011 as the retail director of the Spanish and Portuguese agency. 

In 2015, she was promoted to Brazil’s commercial and expansion director, where she was responsible for the development of store and kiosk models exclusive to the Brazilian market, as well as for the expanding the brand’s franchises across the country. In addition, she was involved in the launch of more than 220 products. 

At the beginning of the year, Novarejo interviewed the brand about the company’s path for 2017. The company had closed stores in the previous year, but said that it is continuing with its expansion plans. The plan is to make the brand more well-known and, because of this, investments in marketing would have more weight.

Source: Portal NOVAREJO