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Shinsegae Halts Online Sales of 'Bath & Body Works': The Background Behind 'Strengthening the Cosmetics Business'

[비즈한국] The popular American cosmetics brand 'Bath & Body Works', famous as a go-to item for direct overseas purchases, has abruptly suspended its online sales, drawing attention to the reasons behind the move. Sales were halted simultaneously at the start of the new year across Shinsegae004170 online malls, including Chicor.com, SSG.com, and S.I.VILLAGE. Investigation revealed that the responsible business unit was transferred from Shinsegae Department Store to Shinsegae International031430. Shinsegae Department Store stated, "This is a decision made to expand the brand's business and enhance its competitiveness."

'Bath & Body Works' is a cosmetics brand that gained attention when Shinsegae Group secured exclusive domestic distribution rights last May. Upon signing the contract, the first store opened in Sweet Park on the basement floor of Shinsegae Department Store's Gangnam branch, and products were also sold via major Shinsegae online malls such as Chicor.com, SSG.com, and S.I.VILLAGE. Launched in the U.S. in 1990, Bath & Body Works has over 2,000 stores in 43 countries across North America and Europe, offering a lineup of approximately 250 fragrances at reasonable prices. Demand in Korea is high enough that it was previously sourced via direct purchases from the official U.S. website and through local purchasing agents.

However, some consumers had voiced complaints, noting a lack of variety in the products available domestically and a lack of price advantages compared to the official U.S. website. Against this backdrop, the sudden suspension of online sales led to speculation that the brand might be planning an early withdrawal from the domestic market.

As it turns out, this was not a market withdrawal but a measure resulting from the transfer of the business unit. A Shinsegae Department Store representative stated, "As of the beginning of the year, the Bath & Body Works business unit has been transferred to Shinsegae International. While offline stores are unaffected by logistics, the online segment requires changes in logistics management, so we plan to resume sales around the fourth week of this month after reorganization." Notices were placed on products in offline stores stating: 'As of January 1, 2025, the cosmetics distributor and importer will change from Shinsegae Department Store Co., Ltd. to Shinsegae International Co., Ltd.'

This business unit transfer is related to Shinsegae International's focus on strengthening its beauty business competitiveness. Shinsegae International has been offsetting lackluster performance in its fashion and lifestyle divisions with its cosmetics segment. As of 2023, the cosmetics division of Shinsegae International recorded an all-time high revenue of 379.7 billion won. Shinsegae International possesses over 30 cosmetics brands, including its own brands Yeonja, Poiret, Swiss Perfection, and VIDIVICI, as well as imported brands like Diptyque, Santa Maria Novella, Byredo, and Laura Mercier. It is actively expanding its business portfolio, including the acquisition of the indie beauty brand 'Amuse' last October.

Shinsegae Group carried out a regular group reshuffle last year, which also involved dividing business sectors. Kim Hong-keuk, CEO of Shinsegae Casa, was appointed to concurrently serve as the head of Shinsegae International's Beauty & Life division, while William Kim, CEO of Shinsegae International, became the head of its Fashion division.

A Shinsegae representative stated, "This transfer is a decision for the business expansion and competitiveness enhancement of Bath & Body Works, and we plan to expand customer touchpoints through more diverse online and offline distribution channels in the future," adding, "Shinsegae International has now expanded its imported cosmetics portfolio to include mass-market brands and strengthened its cosmetics business competitiveness. We plan to actively nurture Bath & Body Works based on our expertise."