A prominent US beauty brand has made a decisive move to close all its physical stores in the UK. This shift marks a significant change in strategy for the company.
Seven UK Stores Shut Down
The well-known cosmetics company has closed seven of its brick-and-mortar stores across the UK. The locations affected include Birmingham, Nottingham, Manchester, Liverpool, Newcastle, Cardiff, and Stratford. A total of 73 employees have been made redundant as a result.
Transition to Wholesale and Online Operations
Despite the store closures, the brand continues to operate through wholesale and online channels. Consumers can still purchase their favourite products at major retailers such as Boots, Selfridges, and Flannels. Additionally, the company’s online store remains active.
Challenges Faced by Physical Stores
High rental obligations have been cited as a primary reason for the closures.
The company faced disproportionately high store rent obligations in Europe, making it difficult to sustain these locations.
Support for Impacted Staff
A spokesperson stated the company is immensely grateful to the dedicated store teams for their hard work over the years.
Strategic Shift to Match U.S. Model
The move aligns with the company’s strategy to focus on successful wholesale and e-commerce operations seen in the U.S. market. This strategic shift is expected to bolster future growth for the brand.
Ownership Transition
The brand aims to maintain its strong presence in the UK market through this new operational model.
Customer Access to Products
Even without physical stores, customers have various options to access the products they love. The beauty brand will continue to have counters in popular retail chains, ensuring accessibility.
This significant shift to online and wholesale channels is a strategic move for the US beauty brand. By closing its UK stores, the company aims to focus on more sustainable and profitable operations.