Key Takeaways
- Swiss retailer Coop will close all 33 The Body Shop stores in Switzerland after ending its franchise agreement.
- The decision stems from The Body Shop’s reduced market position and the end of their contract in May 2024.
- Coop plans to repurpose the stores, although the impact on financials has not been disclosed.
Closure of The Body Shop Stores in Switzerland
Swiss retailer Coop has announced it will not renew its franchise agreement with The Body Shop, leading to the closure of the brand’s 33 stores in Switzerland. The decision is part of Coop’s strategy as it cites The Body Shop’s diminishing “unique positioning” in a competitive retail environment as the primary reason for ending the partnership.
The franchise agreement is set to expire in May 2024, at which point Coop will begin repurposing the vacated store spaces. This move reflects the changing landscape of retail, where brands must constantly adapt to maintain relevance. Although The Body Shop’s UK-based parent company filed for insolvency in February 2024, the operational aspects in Switzerland remained unaffected until now.
Coop has not provided details on how ending this franchise will impact its overall financial performance. The closure marks a significant shift in the Swiss market for The Body Shop, which will no longer have a presence in the region. As the local market evolves, Coop’s decision underscores the challenges traditional retail brands face in sustaining their market positions. The retailer’s next steps regarding the repurposed spaces could shape future retail offerings in Switzerland.
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