The ethical retailer does not plan to draw on the services of an agency of record for the foreseeable future but may use external agencies on an ad hoc, project specific basis.
Leagas Delaney was handed The Body Shop creative ad account in August 2007 following a three-month review overseen by the AAR.
It is understood to have pitched against Kamarama, Publicis, and the ethical retailer's in-house creative department.
Before selecting Leagas Delaney, the L'Oreal-owned retailer had not used traditional advertising but focussed on in-store promotions and word of mouth.
Since its appointment, Leagas Delaney has worked with the retailer's in-house creative team on global brand communications and strategy.
The agency’s latest poster campaign, which launched in August, set out to re-assert the retailer's position as an ethical beauty brand.
A spokesman for The Body Shop said: "The Body Shop can confirm that its creative development will continue to be managed by the existing in-house studio under the leadership of creative director Nikki Austen."
The appointment of Leagas Delaney was The Body Shop's biggest investment in advertising since Anita Roddick launched the company 30 years ago. L'Oreal acquired The Body Shop in 2006 for £652m.
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