Lush UK: Pioneering Sustainable Beauty While Facing Economic Headwinds

Sustainable Growth Amid Market Challenges

British cosmetics brand Lush is maintaining optimism about sustainable growth despite facing challenges in 2023, where the company recorded brand turnover of £816.8m, showing a decline of 2.3% from 2022. The group posted a pre-tax loss of £28.1m compared to the previous year’s profit of £3.3m.

However, there are positive signs of recovery, with the UK business seeing a 5% increase in the first quarter of FY24. The company notes that despite high street difficulties, customers continue to embrace their product innovation and view their stores as “an oasis of kindness.”

Environmental Leadership and Innovation

Lush’s commitment to environmental sustainability remains strong, with their Green Hub playing a crucial role in waste management. Over 70% of their discarded materials are collected, sorted, and processed responsibly, with 63% of their biggest waste source – paper towels – being diverted from landfill. In new store construction, only five percent of materials end up in landfill.

The company continues to lead in sustainable packaging initiatives, with most of their packaging being sustainable, recyclable, and reusable. More than 70% of their packaging is made from recycled, organic, or regenerative materials, and over 80% of products leaving their shops are recyclable, reusable, or compostable.

Retail Expansion and Innovation

Lush’s larger stores are focusing on experience-led and experimental concepts, featuring exclusive products, spas, and hair salons offering bespoke handmade treatments. A notable development is the launch of their standalone HairLab in Brighton, which features no chemical hair dyes, recycles 100% of its salon waste, and champions diversity with texture-specialist hair artists.

Employee Engagement and Ownership

The company continues to create new job opportunities across the UK and Ireland, recently announcing over 1,000 new roles. As a Living Wage Employer with 10% employee ownership, Lush has been recognized for the third year as one of the Financial Times Europe’s Diversity Leaders.

Future Outlook

Looking ahead, Lush has expressed its commitment to do more, emphasizing the need for bold action in the present rather than long-term commitments for the future. The company aims to make the world “Lusher,” with equity and justice at the heart of this transformation.