Mark Konstantin, co-founder of Lush Cosmetics, said the brand's popularity in Europe has waned since Brexit. Photo: John Lawrence
Lush, an ethical cosmetics company that deals with issues such as climate change, blamed Brexit for a drop in its sales in Europe.
The retailer reported a 28% drop in sales year-on-year until June 2022 compared to a year earlier. with a 10% fall recorded in the UK, his latest available records showed.
Mark Constantine, co-founder and chief executive of Lush, said: “Is Brexit to blame? Our popularity in Europe has definitely waned since Brexit and we need to restore the love for our British brand across Europe.”
Lush was founded in 1995 by Mr. Konstantin and a group of entrepreneurs who contributed to the success of The Body Shop. Her first store opened in Poole, Dorset, and she now has stores throughout Europe, including Germany, Italy and France.
Mr. Konstantin added that the factory in Germany, in which Lush invested after the EU membership referendum, lost money because it was producing fewer products at its site due to lower sales.
Reports Lush revealed its profits were wiped out last year as the company posted a loss of £260,000 compared to a profit of £22m a year earlier.
The company said spending rose sharply amid inflationary pressures, and sales in the second half of the year were hit by lower purchasing power in most major markets.
UK Inflation: 2306 vs.
Lush added that the decision to stop posting on Facebook, Instagram, TikTok and Snapchat was hurt by its «global policy against social media».
At the end of 2021, he promised to shut down websites to put pressure on social media companies to stop harmful content from appearing on the Internet.
Mr Constantine said: “At the time we estimated it could be £10m in sales, but it could very well be £10m profit or 10% of our brand’s £800m (£80m) sales. ). We just don't know.”
The anti-social media policy is part of Lush's efforts to position itself as an ethical retailer. The company has been involved in a number of high-profile campaigns in recent years, including in 2018 on secret police misconduct.
This advertising campaign drew criticism from the then Home Secretary, Sajid Javid.
Mr. Constantine has also previously supported the Extinction Rebellion movement, providing seed funding for the movement to help build it.
In 2020, he promised to stop funding the group after the blockade of newspaper printing houses, saying that he was no longer comfortable making donations.
In February, Lush plunged into a crisis. litigation with a former director over control of a large stake in the business.
Andrew Gerry, a former director, said he had transferred a £220 million stake in the retailer to his listed company, Silverwood Brands.
However, Lush refused to register the transfer, arguing that the move violated historic agreements governing the buying and selling of its shares. Silverwood stated that this position is «completely unfounded» and stated that she has a «contractual right to control the shares that protects our shareholders.»
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