L'Oreal is reportedly planning to sell The Body Shop

L'Oréal is considering selling off The Body Shop for €1bn (£850m) due to the retail brand's poor performance.

The FT has reported that L’Oréal engaged bankers at Lazard for a review of its options for the unit, aiming for an outright sale.

This news comes as The Body Shop’s sales have continued to decline. The natural beauty brand, which has 3,000 stores in 66 countries, reported a 0.6% drop in like-for-like sales in the first half of 2016 due to an economic slowdown in Hong Kong and Saudi Arabia.

The FT expects the group to announce its plans for the brand in its 2016 full-year earnings call this Thursday.

At press time, L’Oréal had not yet responded to a request for comment.

L’Oréal acquired The Body Shop eleven years ago for £652.3m.

The brand’s global creative agency is Mr President.

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