Bodycare secures investment to accelerate UK store rollout and AI-led retail transformation

Bodycare has completed an investment round led by early-stage venture capital firm Arāya Ventures, supporting the value beauty retailer’s national store rollout and AI-led operating model.

Entrepreneur Dilesh Mehta also participated, alongside a syndicate of brand builders, retail leaders, operators and technology specialists. Bodycare did not disclose the size of the investment.

The funding follows the opening of Bodycare’s first "next-generation" Studio Store in Sheffield, where the retailer said early trading had exceeded expectations. Further locations are planned to open in Derby and Leicester during August.

Bodycare is rebuilding its store estate after the previous company entered administration in September 2024, resulting in the closure of all 147 locations. An investor group led by Charles Denton later acquired the brand and intellectual property.

Denton, the former Chief Executive of Molton Brown, who also worked on The Body Shop’s turnaround, was appointed CEO and Executive Chairman in July. The retailer is aiming to open 25 stores in 2026, 50 by the end of 2027 and 200 sites over the next five years.

The new capital will support the development of AIMEE, Bodycare’s proprietary intelligence platform, which analyses customer behaviour, product trends, pricing, inventory levels and creator performance.

Its applications include merchandising, supply-chain optimisation, customer insights and operational efficiency. Bodycare is positioning the technology as infrastructure to support its physical retail estate rather than as a replacement for stores or employees.

Rupa Popat, founder and Managing Partner at Arāya Ventures, said: "We believe the next generation of retail winners will combine trusted consumer brands with AI-first operations, intelligent decision-making and disciplined execution.

"Bodycare has a powerful foundation, a loyal customer base and an ambitious leadership team with a clear vision for reinventing value retail. We’re excited to partner with Charles and the wider team as they build a technology-enabled retailer that is redefining what value retail can become."

The investment comes as Bodycare’s Studio Store format brings together everyday health and beauty essentials, exclusive brands, professional services and creator facilities. Locations are designed to host live social commerce broadcasts and provide production spaces for local creators.

“Retail doesn’t need another retailer, it needs a fundamentally different model. Consumers increasingly discover products through creators, expect outstanding value without compromise and still want the experience of shopping in person building human connections. Bodycare has been built to bring those worlds together," said Denton.

"Arāya Ventures and our co-investors share our belief that the future belongs to retailers capable of combining physical stores, AI and creator-led commerce into a single, connected customer experience.

"Their backing gives us the resources, expertise and strategic support to accelerate our rollout and execute our long-term vision of building one of the UK’s most innovative retail businesses."

The investment will accelerate a wider five-year revival plan, including planned locations in Bradford, Leeds, Wakefield, Dudley and Blackburn, alongside the Sheffield, Derby and Leicester stores.