The beauty landscape has changed—Why The Body Shop couldn’t keep up and how you can

I was inundated with media calls last week asking about why The Body Shop failed and “isn’t it terrible that such a legacy brand cannot find a buyer?” I think not! The Body Shop was once an innovator, championing cruelty-free products, ethical sourcing, and sustainability before these concepts became industry norms. But in 2024, its closure in ANZ was almost inevitable. The retail beauty space has undergone a seismic shift, with powerhouse players like Mecca, Chemist Warehouse’s Ultra Beauty, Sephora, Lush, and emerging disruptors like Adore Beauty and Atomica redefining how consumers shop, what they value, and where they spend their money.

So what changed, and how did these competitors thrive where The Body Shop faltered?

How Mecca & Chemist Warehouse redefined beauty retail

Mecca: The Ultimate Prestige Beauty Destination

Founded in 1997, Mecca has become a dominant force in ANZ’s beauty retail scene by curating an ultra-premium, highly experiential shopping experience that goes far beyond simply selling beauty products.

?? Curated Global Brands: Mecca brings together exclusive, hard-to-find prestige brands like Drunk Elephant, Tatcha, and Diptyque, offering a ‘must-visit’ destination for beauty enthusiasts.

?? Experiential Retail: Their stores are immersive, featuring makeup stations, masterclasses, and in-store consultations—something The Body Shop never fully invested in.

?? Powerful Loyalty Program: Mecca Beauty Loop has turned casual shoppers into brand evangelists, offering rewards, samples, and exclusive product access, keeping customers engaged long-term (I’m up to level 3 again!! But I am in pursuit of the off-the-record member program level I’ve seen on TikTok)

?? Omnichannel Strength: Mecca seamlessly integrates online and offline experiences, ensuring customers can explore, try, and purchase products however they prefer. I am me where ever I shop in country it’s not trans-Tasman which is a fail in my eyes (isn’t NZ just a state of Aussie ??)

While The Body Shop relied on legacy branding, Mecca continued to evolve, remaining aspirational, exciting, and deeply connected to beauty consumers' changing preferences.

Chemist Warehouse Ultra: Making Premium Beauty More Accessible

At the other end of the spectrum, Chemist Warehouse Ultra is redefining premium beauty and fragrance retail in a mass-market environment.

?? Luxury at Competitive Prices: Ultra offers prestige skincare, fragrance, and makeup brands at significantly lower price points than department stores, democratizing access to high-end beauty.

?? Wider Reach & Convenience: Unlike traditional beauty retailers, Ultra benefits from Chemist Warehouse’s high foot traffic, ensuring products are always accessible to consumers.

?? Strong Brand Partnerships: Ultra has secured an impressive portfolio of high-end beauty and fragrance brands, offering a curated experience within the larger Chemist Warehouse footprint.

This is my local store Ultra Glen Innes and I have to say it keeps getting better and better and my wallet lighter and lighter (so much I am on a 3 month no buy restriction).

Ultra’s success demonstrates that premium beauty no longer needs to be confined to luxury retail spaces and that affordability and accessibility are key drivers of modern beauty retail.

?Check out customers raving on TikTok

The Social Media and Influencer Effect: A Game-Changer in Beauty

One of the biggest shifts in the beauty industry over the past decade has been the rise of social media and influencer-driven commerce. The Body Shop, despite being a legacy brand, struggled to leverage this shift effectively, while newer players mastered influencer marketing, user-generated content, and TikTok virality. Personally, I think they could have leaned into nostalgia but would that have been enough?

Mecca: The Power of Exclusivity and Digital Buzz

• Mecca has successfully spring-boarded direct-to-consumer (DTC) brands that gained traction online but needed a premium retail partner to scale.
• Brands like Drunk Elephant, Glow Recipe, and Summer Fridays first gained cult followings on Instagram and TikTok before entering Mecca’s shelves, where demand exploded further.
• Their influencer partnerships, high-quality digital content, and in-store events with beauty creators help reinforce the brand’s aspirational status.
• They actively lean into TikTok trends and viral products, ensuring their offerings stay culturally relevant.

Ultra: Bringing Social Media Hype to the Masses

• Ultra capitalises on viral beauty trends by making high-demand products easily accessible and competitively priced.
• They stock brands that have gained massive traction online, ensuring their assortment reflects what consumers are already searching for.
• Their ability to combine mass distribution with premium branding means they can serve both budget-conscious and high-spending beauty consumers.

Unlike The Body Shop, which relied on traditional advertising and legacy brand recognition, Mecca and Ultra fully embraced social commerce, leveraging digital influence to stay ahead.

Emerging Disruptors: Adore Beauty & Atomica

While Mecca and Chemist Warehouse have set the stage for how beauty retail operates today, two new players are challenging the status quo—Adore Beauty and Priceline’s new beauty-focused concept, @Atomica.

Adore Beauty: Australia’s Leading Online-First Beauty Retailer

Adore Beauty started as a pure-play e-commerce retailer and has grown into a leading digital beauty marketplace, proving that success in beauty doesn’t require a brick-and-mortar presence.

?? E-Commerce First: Unlike The Body Shop, which was slow to optimise its online presence, Adore Beauty built its entire business on digital-first retail, making it a go-to destination for Australian consumers.

?? Strong Community & Content: Through podcasts, beauty education, and customer reviews, Adore Beauty creates trust and engagement, something The Body Shop struggled to maintain in the digital age.

?? Expansive Brand Selection: Adore Beauty stocks over 260 brands, offering far greater choice.

This digital-native approach has allowed Adore Beauty to tap into younger consumers who prefer shopping online and value transparency, expert advice, and social proof over traditional retail experiences. But to grow they are now exploring bricks and mortar retail with a new store to open this year.

Atomica: Priceline’s Strategic Move Beyond "Me-Too" Beauty

Priceline, traditionally known for pharmacy and budget beauty, has launched Atomica, a premium beauty concept store that challenges Mecca while avoiding direct competition. Unlike past ‘me-too’ beauty chains, Atomica brings something new to the table.

Check out the full tour of the store on TikTok

?? Targeting the ‘Next Generation’ of Beauty Consumers: Atomica is designed for younger, trend-focused beauty shoppers, emphasising cutting-edge brands and a fresh store design.

?? Phygital Integration: Atomica blends the best of online and offline shopping, with digital screens, live tutorials, and a seamless checkout experience.

?? Niche & Emerging Brands: Instead of focusing solely on big-name prestige brands, Atomica brings together smaller, trend-driven beauty brands, creating a sense of discovery that traditional beauty retailers lack.

?? Affordable Premium Positioning: Atomica sits between Mecca and Chemist Warehouse, offering a curated yet accessible assortment, making it more appealing to a wider demographic.

By moving beyond a "copy-paste" beauty model, Atomica shows that the future of beauty retail is about reinvention and specialisation, not just replication.

Why The Body Shop Couldn’t Compete in 2024

Against this backdrop of hyper-competitive, rapidly evolving beauty retail, The Body Shop’s struggles become clear:

? Lack of Differentiation – Once a pioneer, The Body Shop failed to evolve beyond its activist roots. In a world where every beauty brand is ‘clean’ and ‘ethical,’ it no longer stood out.

? Failure to Leverage Social Media & Influencer Trends – The Body Shop was slow to embrace TikTok, influencer partnerships, and viral marketing—something its competitors mastered.

? Store-Heavy Model in a Digital Age – The Body Shop’s outdated retail footprint became a liability, while competitors built stronger omnichannel and e-commerce strategies.

The closure of The Body Shop in ANZ isn’t just about its own missteps—it’s a reflection of how much the beauty landscape has changed. Today, brands must be digitally native, influencer-driven, and continuously evolving to succeed.

While legacy players like The Body Shop fade, new beauty disruptors continue to reshape the industry, proving that adaptation, innovation, and customer connection are the real keys to success in 2024.

??? Who do you think are the movers and shakers of 2025 in Australia and New Zealand and what roles will department stores play in bringing beauty retail to life?

?? And does Mecca have a potential problem? Mecca’s growing appeal to younger audiences—particularly the 11-14 year-old "Sephora Kids" demographic—is a double-edged sword. On one hand, it's a sign of strong brand relevance and a future-proof strategy. On the other, it could present challenges for its premium positioning and core customer experience.

Share your thoughts. We'd love to know about your thoughts and experiences.

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