Back to the archive

The encyclopedia · Strategy & Leadership · Strategic decision · 2011–2025

Skincity shut down after 14 years — the owner stopped investing after the Kicks merger

Skincity grew to nearly 600M SEK in sales, then owner Axel Johnson merged it into Kicks and stopped working the site — sales slid and it closed in March 2025.

Skincity · Kicks · Axel Johnson · 2025-03-30

What happened

Skincity was a Swedish online beauty retailer founded in 2011 by Mikael Kjellman as a family company. It grew into one of the country's best-known e-commerce skincare destinations, reaching just under 600 million SEK in annual sales, and turned profitable during the pandemic years.

Axel Johnson took a majority stake in 2017 and full ownership in 2021. In October 2022 the group merged Skincity with its beauty chain Kicks into Kicks Group, billed as the Nordic region's leading beauty player — Kicks alone had 3.6 billion SEK in turnover and 230 stores across Sweden, Norway and Finland. The plan was synergies in logistics, customer experience and technology, with the two brands kept separate toward customers.

After the merger, Skincity.com was left to wither. Kicks CEO Carola Lundell later admitted the platform had not been actively worked on for months: no campaigns, no newsletters, no offers, no relaunches — and sales on the platform dropped. In February 2025 she revealed the next step was to close Skincity.com and fold professional skincare into Kicks as 'ProSkin by Skincity'. The site shut on 30 March 2025 with a farewell page reading 'Tack för oss', ending 14 years of operations. Some loyal Skincity customers were lost in the transition, the CEO acknowledged.

Why it happened

  • After the 2022 merger, Kicks Group stopped investing in Skincity.com — no campaigns, newsletters, offers or relaunches — and sales on the platform fell.
  • Skincity's business depended on its own e-commerce platform and customer base, which the new owner chose not to maintain once the brands were folded together.
  • The acquisition thesis was synergy, but the execution was absorption: the smaller brand's channel was quietly run down instead of developed, then closed.
What it cost600M SEK e-commerce business closed after 14 yearscostly

The lesson

An acquirer that stops investing in the brand it bought is killing it slowly. Synergies are not automatic — a platform with no campaigns loses customers, and the smaller brand pays the price.

Sources

spotted an error? The club wants to know.

Comments · 0

    Sign in to join the comments.

    More like this

    Somewhere, someone solved the problem this company failed at. 2nd Opinion →