Discount beauty and toiletry retailer, Bodycare could collapse in a matter of days should they be unable to secure a buyer over the next week.
The ailing business, which employs over 1,500 staff is actively exploring options but may need to enter administration if they fail to find any interested parties soon.
Bodycare have a current portfolio of 149 stores across the UK and were profitable until the Covid-19 pandemic shook the firm financially. The 55-year-old chain is run by the experienced Tony Brown, who formerly presided over the now defunct BHS and Beales which both suffered a similar fate.
So what went wrong for Bodycare?
Budget sector facing difficulty
2025 has seen a few discount stores struggle. We’ve already seen Poundland, The Original Factory Shop, Iceland, and B&M all closing stores, with even more scheduled in some cases.
Given the economical challenges that most UK households have faced over the last five years, it may come as a surprise to hear that budget retailers are struggling. Unfortunately for discount stores, however, many operate within tight margins and operate a ‘sell low, sell many ‘ business model that relies on continued high levels of custom.
Increased competition
Some of those same stores are also partly to blame for Bodycare’s struggles. During its inception, there were relatively few rivals for Bodycare to worry about. Superdrug and Boots became the closest stores to them in terms of offerings, but tended to be more expensive than the budget chain.
Fast forward a few more years, however, and the landscape had changed dramatically. Many budget stores like B&M and Home Bargains started to stock toiletries and cosmetics at low prices too, while supermarkets also got in on the act, dropping their prices or providing special offers to compete too.
It also almost goes without saying at this point, but the adoption of widespread internet retailing has obviously hurt a business set up in 1970 to succeed on the British high street.
The rise of ‘dupes’
The majority of Bodycare’s high-value items sold would fall in the fragrance category. In its heyday, Bodycare would represent a great option to purchase big-name aftershaves and perfumes for less money than other retailers.
Now though, consumers have a little more option. While counterfeit fragrances have been around for some time, the last decade or more has seen a greater number of ‘dupes’ available to the public. These fragrances are formulated to be close to those of far-more-expensive household names but crucially, don’t infringe upon any branding or packaging trademarks.
Once confined to neighbours selling to others in pyramid-type schemes, these ‘dupes’ are now much more accessible and are often advertised on social media for people to order online.
High-street footfall
Given their business model of operating under tight margins, places like Bodycare depend on volume of custom. At one point, this would have been provided by strong footfall in shopping centres and high streets.
Now, though, the high street can’t be relied upon to provide the same sort of footfall. Rising business rates and rents have made high street trading much less attractive for new shops, while established chains are leaving by the day. Recent figures put one in ten shopping centres as having more than 40% of their units vacant.
Is your business finding conditions difficult?
Nothing stays still for long in business. Your company needs to be able to adapt to sifting landscapes in order to stay successful. At Forbes Burton, we’re able to help with restructuring plans, strategise the best way to exit, or even find a buyer for your business.
Call today on 0800 975 0380 or email advice@forbesburton.com for a free consultation with one of our expert advisers and find out how we can help business owners navigate an uncertain future.
