Beauty Business News September 2022

Sephora has just discovered what an absolute nightmare data gathering can be. It’s settled a law suit to the tune of $1.2 for failing to properly disclose that information may be sold to third parties, falling foul of Californian laws.

Just when we thought that try on tools were a gift from the beauty gods for those of us who find it hard to get to stores, they’ve become the latest hot potato for class actions in the US.  Currently, L’Oreal is facing a class action in the state of Illinois which prohibits the collection of biometric data such as eye scans on the grounds that the tool doesn’t indicate to users that it is capturing such data. No permission is sought before users begin so there is no way for them to know that their data is being collected. At the same time, L’Oreal is also facing a disability class action (and randomly, Goldman Sachs) because their websites aren’t accessible to blind people using screen readers. Meanwhile, MAC is looking at class action that suggests it has monitored and recorded customer movements on its website in secret.

Revolution Beauty – what is going on there? Recently, Boohoo became minority stakeholders in Revolution but yesterday the news broke that Revolution has suspended share trading for failing to submit its audited final results and annual report for FY22. I bought shares so that’s annoying. In happier news my shares in M&S and Sainsburys are soaring. And to put to bed any notion that I’m a financial mastermind, the sum total of all my shares is about £300 😊

Rumours abound that Natura is considering selling The Body Shop. Brazilian based Natura also owns Avon and Aesop is said to be looking to slim down its operations and given that both Avon and Aesop are doing well while The Body Shop isn’t meeting expectations, it looks like the obvious choice. That said, experts think that both Avon and Aesop could be in line for sale.

Sephora

Speaking of rumours, I hate to say that the Sephora-opening-in-Westfield speculation is back – and seems sound for a next year start.

Boots has posted losses again in the year to last August with an in the red number of £111 million although that’s better than the £258 million they lost the year before. However, government funding and lowering operational costs meant that they’ve made a small profit of £8 million in operating (the total income a company generates from sales after paying all expenses such as rent, payroll and equipment, excluding gains or losses from interest, taxes and investment). So, if you can’t find anyone on the shop floor, that’s why. In better news though, Boots are donating 50,000 hygiene items via The Hygiene Bank to children in schools without easy access to personal care.

Revlon Prime Plus

I don’t know if you remember a company called GameStop whose shares shot through the roof because of a Reddit Forum for investors? A similar thing is happening with Revlon and the term that’s used for situations like this (currently also happening to Bed, Bath & Beyond) is ‘meme stock’. Please head HERE to read about GameStock. Since filing for bankruptcy Revlon shares have been on the rise for the past few weeks thanks to the same Reddit group. The problem with this is that it isn’t sustainable and even more messy because original shareholders now want to present to court the higher share price as true value to mitigate their losses. There is a good feature HERE that explains it far better than I ever can.

 

 


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18 responses to “Beauty Business News September 2022”

  1. Hannah

    The fluctuating fortunes of Body Shop are sad for those of us who loved it in the 80s. It’s so expensive at the moment! Nearly died when I saw body butter is £18. I only ever buy things from the Outlet now.

    1. Jane Cunningham

      Yes, prices have gone up – I feel the quality and ingredients have improved but I completely hear you on that.

    2. I love Body Butter but I always baulk (sp?) when I remember how cheap it used to be!! Their brow gel is v good though, better than the MAC one (which is never in stock anyway)

      1. Jane Cunningham

        I know – it’s strange that they’ve tried to make it more premium when the beauty and integrity of it was that it was something for all budgets. But then, look at Boots No7 Skin Care at Estee Lauder prices.

  2. Summer

    Interesting summary Jane. How does a private company like Boots receive government funding to mitigate its losses though? That seems inappropriate

    1. Jane Cunningham

      Possibly to do with their links to NHS and prescriptions – I mean, we couldn’t really do without Boots especially in the pandemic because they fulfil millions of prescriptions. But I don’t truly know.

  3. Summer

    I feel that the fines for data gathering should be higher. It’s outrageous the way companies take advantage of consumer ignorance. Even if choices are presented they are so cumbersome and confusing to change, for example with cookies, that most people understandably give up changing them. Nowadays consumer data is the most valuable currency and it’s not fair that consumers don’t have more clarity and control over their information

    1. Jane Cunningham

      agreed!

  4. Jane

    I was never much of a Body Shop fan (my sister wore the Peach oil and a friend was all Dewberry all the time) but I despise what Natura has done to Avon, so if what they’ve done to the Body Shopt is similar to what they’ve done to Avon, my sympathies to the fans of Body Shop.

    1. Jane Cunningham

      I never really have any contact with Avon so I haven’t seen what’s happened. Fingers crossed it all works out x

  5. Mo

    Am looking forward to your summary of what’s going on with Tata Harper…

    1. Jane Cunningham

      I will have a look – sorry I’ve been out of the loop for a few weeks – I’m still catching up!

  6. Claire

    Hi Jane, if you ever come across anything about it I would love to know your opinion of Beauty Pie and the direction the brand is going/how it’s evolved in the last few years. I have not been able to find any unsponsored reviews/comments and would really value your opinion. Thank you for reading!

    1. Jane Cunningham

      I’m still uncomfortable with Beauty Pie although it seems to be doing extremely well. The claims that products that cost X are really exactly the same as products that cost the far more expensive Y is where it loses me because nothing is substantiated – it’s on a ‘because we say so’ basis and that’s just not good enough. That said, I can see it is doing well and I am tempted by some of the products although personally, committing to a certain spend each month isn’t how I want to buy my beauty products. Everything that Marcia does turns out well so I’ve no doubt it will continue to grow and succeed but it just isn’t for me.

  7. Claire

    Thank you Jane, as a former member I agree totally.

    1. Jane Cunningham

      Good to know – I do keep feeling tempted but the concept doesn’t add up.

  8. Bryan Levandowski

    Hey Jane! Can I ask where you bought your shares? Looking to do the same but it all seems a bit confusing haha
    Thanks! 😉

    1. Jane Cunningham

      I use an app called Trading 212 but must stress I really only play with pin money… nothing serious!

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