Operational Review

Review of the year

The Body Shop delivered a strong performance for the year and again showed robust volume growth as unit sales increased by 11.9%.

Turnover for the year increased by 14.1% while the brand experienced selling price deflation of 1.9%. Comparable store sales increased 13.8%.

The gifting, body care and accessories categories grew strongly, driven by better ranges, greater product innovation and improved stock availability.

The membership of the Love Your Body loyalty programme, which was launched in the previous financial year, has increased to 158 000 and accounts for 55% of the brand’s sales. The average basket value of these loyalty cardholders is 34% higher than non-cardholders. The programme is based on the Clicks ClubCard model where customers qualify for cash-back vouchers to spend in The Body Shop.

New stores were opened in Nicolway, Johannesburg, and Mall of the North, Polokwane, with the latter store being opened a few days before the year-end. Three stores were closed, bringing the store base to 41 at year-end. The Body Shop has a presence in 49 Clicks stores, including five store-within-a-store concepts and capsule ranges of the best-selling lines in 44 Clicks stores.

Capsule ranges in Clicks stores enable The Body Shop to increase distribution and accessibility to the brand. Sales have not been negatively impacted where these Clicks stores trade in the same shopping centres as standalone stores of The Body Shop.

The Body Shop brand was re-launched internationally in May 2012 to support the brand vision “to be the world’s number one natural and ethical beauty brand”. A new brand expression of “Beauty with Heart” was introduced to reflect the ethos and heritage of the brand’s offering of natural products underpinned by ethical values.

The re-launch was supported by new product packaging, product innovation and an improved in-store experience. The stores in Sandton City and OR Tambo International Airport were refurbished to align with the new global store look and feel.

Focus areas for 2013

The brand’s presence will be expanded with the opening of new stores in Ballito, Hermanus, and the first store in Gaborone, Botswana, while capsule ranges will be introduced to a further 21 Clicks stores. Four stores will be refurbished to reflect the new store look and feel.

A key focus will be on driving better customer engagement and visit frequency by increasing the membership base and sales contribution of the Love Your Body loyalty programme.