Body Shop to Farm Out Manufacturing

Body Shop International, a British beauty products retailer known for its pro-environment stance, said it plans to contract out manufacturing of its products in a restructuring that will result in the sale of two plants and the loss of an unspecified number of jobs. The company said outside contractors must match Body Shop’s standards and submit to independent social and environmental audits. Body Shop, which operates about 1,700 stores worldwide, is also reviewing its franchising relationships as it moves to cut costs and revive sagging profit. Body Shop has already taken control of franchises in France and Germany and now owns 75% of its U.S. stores. The changes will result in one-time costs of $39 million this year and should save $13.3 million a year.