Cosmetics retailer Lush is planning to end its main charitable giving stream at the end of the month.
The announcement comes four months after the Poole-headquartered retailer posted a pre-tax loss of nearly £30m, despite achieving a turnover of more than £700m.
Lush launched Charity Pot in 2007 with a target of £1m for grassroots groups working in the areas of animal protection, human rights and the environment. Over the past 17 years, Lush has distributed 17,000 grants worth millions of pounds.
Funding has gone to a range of organisations including groups defending the human rights of refugees and displaced people globally; the LGBTQI+ community counteracting prejudice; anti-fracking groups; and non-profits addressing racial discrimination.
Lush said that campaigning and charity products would not be disappearing from its business.
“Following Lush reaching the significant milestone of over £100 million in donations, the business feels that this is the right time to reflect on charitable giving as a whole and assess the funding needed to meet the current challenges the world faces at this critical time,” the company said in a statement.
Lush said its biannual prizes would continue and it would also continue to support good causes. It is planning to raise money through product sales instead. The retailer is currently selling ‘watermelon slice’ soap in shops and online, with 100% of the profits going to childhood mental health services in Palestine.
The business is also planning to launch ‘keystone products’, inspired by species that act as ecosystem engineers, regenerating habitats for other species.
“Each keystone product will raise money for a project in a priority landscape around the world”, Lush added.
Lush operates in 51 countries and has manufacturing sites in six, according to latest accounts on Companies House. It also has 857 permanent shops, the financial data states, down from 886.
In January, Lush was victim to a ransomware attack that temporarily shut down some of its internal computer functions in the UK and Ireland. The company has since been working with external security specialists to investigate the incident.
Retail shops and the firm’s ecommerce functions were not affected and no customer credit card details or information was accessed.