Lush left Brazil twice — the second time with 129 jobs and a factory gone

Lush, the British cosmetics company known for its ethically sourced handmade products, first entered Brazil in 1999 but exited within a few years due to logistical challenges. In 2014 it returned with an ambitious push: 30 stores across the country and a dedicated factory in Bom Jesus dos Perdões, São Paulo state, to produce locally and avoid Brazil's steep import duties.

The second attempt fared no better. Despite growing sales, Lush could not turn a profit in Brazil. The country's complex tax system, prolonged economic recession, and political instability made operating conditions hostile for a foreign brand competing against entrenched local players like Natura and O Boticário.

On 16 May 2018, Lush announced it would close all operations in Brazil. The five remaining stores and the factory shut down by 20 June 2018. A total of 129 employees lost their jobs — 85 in stores and e-commerce, 44 at the factory. The company liquidated inventory with 50% discounts and donated R$127,000 from its Charity Pot programme to local NGOs before leaving.

Closed all five stores and the factory, liquidating inventory at 50% off and donating R$127,000, after 129 jobs were lost.

Growing sales in Brazil never translated to profit — high taxes, a prolonged recession, and political instability made the market unworkable for a foreign cosmetics brand.

Lush's premium-priced, handmade products faced price pressure from dominant local brands like Natura and O Boticário that understood the market better.

The 2014–2017 Brazilian recession, the worst in decades, crushed consumer spending and forced Lush to shrink from 30 stores to just 5 before the final exit.

Entering a market twice with the same model does not fix the model. Lush's handmade ethos was a cost disadvantage in a price-sensitive market dominated by local giants.

Lush continued operations in over 50 other countries. Its Norwegian subsidiary filed for bankruptcy in 2023. The company's experience in Brazil was part of a broader pattern of global beauty brands struggling to crack the Brazilian market.