Last week, after reporting rising sales across three of its four retail banners in Q2, thanks to the success of its ‘fashiontainment’ turnaround strategy, Gap Inc announced the upcoming launch of a new beauty range in a bid to diversify its offerings. The range will launch with an initial test-and-learn phase at Old Navy later this year, with 150 store locations to feature a curated assortment of beauty and personal care products, and select stores to offer dedicated shop-in-shops and beauty
uty associates.
In 2026, the company plans to scale the Old Navy beauty business and launch brand-right expressions across the rest of the portfolio.
The company’s namesake brand Gap has already been dipping its toes into the world of beauty with a quiet relaunch of its signature fragrances, which were originally launched in 1994, and have been gaining traction with both original fans and younger TikTok-influenced shoppers.
While Gap Inc’s beauty offering is unlikely to compete with the likes of Sephora, Ulta Beauty and other specialty retailers, industry experts believe the company can still succeed in this space.
“Gap is revisiting beauty now because the category offers a powerful way to stay relevant with younger consumers. Beauty is more accessible and affordable than apparel, making it an entry point for Gen Z and Millennials who may not yet be buying Gap clothing,” Kimber Maderazzo, a professor of marketing at Pepperdine Graziadio Business School and seasoned beauty executive, told Inside Retail.
“Beauty also provides growth opportunities, as the category has shown resilience even in challenging retail environments, and it allows Gap to diversify revenue beyond basic apparel.”
What experts have to say about Gap Inc’s play for beauty
Julie Fonseca, a principal at Redwood Peak Advisors, a business consulting and investment advisory firm, noted in a LinkedIn post that while “Gap won’t compete with luxury brands like Christian Dior, La Mer or Charlotte Tilbury Beauty, it will go head-to-head with affordable, trend-driven brands like ELF Beauty and Seed Beauty/ColourPop.”
However, considering that most of the beauty products sold through Old Navy will be priced under $25, the challenge will be to deliver high-quality products at this price point.
Where Gap Inc can set itself apart from other beauty retailers is in effectively weaving beauty into its retail experience, Fonseca explained, and “encouraging shoppers to pick up personal care alongside clothing and turning beauty purchases into repeat habits.”
“This move could diversify revenue and strengthen Gap’s position as a lifestyle brand,” she said. “It’ll be interesting to see how consumers respond – will they buy only the clothing or will they add a bit of personal care to ‘wear’ as well?”
Similarly, Maderazzo remarked that the retail company “should position beauty as an extension of Gap’s casual, expressive style, using creator partnerships and influencer collaborations to reach younger audiences on platforms like TikTok. Campaigns can highlight beauty and clothing together to reinforce a lifestyle connection.”
From a beauty marketing perspective, brand strategist and marketing consultant Bethany Paris Ramsay remarked that Gap Inc won’t win over beauty consumers with good product alone.
“Beauty is no longer just about product, but considers identity, experience and cultural resonance,” said Ramsay.
“But from what Gap Inc has shown us, I have faith that they are prepared to come ready and have already been executing campaigns that hit with audiences and marketers extremely well,” she elaborated.
For Gap and Old Navy, specifically, Ramsay said the opportunity will lie in creating beauty offerings that extend each brand’s lifestyle positioning, rather than feeling like add-ons at checkout.
At Old Navy, this could entail leaning into accessible, family-friendly essentials with affordable self-care items that reflect the brand’s community-driven DNA and more casual aesthetic, she said.
In contrast, Gap has “permission” to enter a more elevated lane by tapping into its legacy of American casual-cool with clean, minimalist beauty staples.
Much like Gap has revived its denim assortment with savvy campaigns that lean into current pop culture, such as the campaign featuring girls’ group Katseye, Ramsay said the brand can tap into Gen Z’s love for Y2K in the beauty category.
“We’re already seeing excitement from creators on TikTok with the revival of Gap’s fragrance line. Consumers have immediately been intrigued and drawn into the reappearance of scents that are deeply nostalgic to them,” said Ramsay.
How Gap Inc can succeed within the beauty market
Here are three key areas Gap Inc should focus on to succeed within the beauty market, according to retail experts:
Maderazzo commented that “from a product standpoint, Gap should focus on a few hero stock-keeping units at launch, such as tinted balms, body mists or skincare hybrids that feel effortless and inclusive”. The brand could also lean into cross-category inspiration, like scents tied to denim washes or seasonal collections, to connect beauty to the brand’s apparel DNA. “Inclusive shade ranges, functional hybrid products and limited seasonal drops will keep the line fresh, relevant, and aligned with the values of younger consumers,” she said.
Community and cultural alignment: “This will be particularly important for Old Navy with its massive and diverse consumer base. Beauty options need to be deeply inclusive and functional, with campaigns that spotlight their lineup in community-centric ways that could set them apart from mass competitors,” Ramsay added.
Experiential integration: “Beyond product launches, Gap Inc should focus on experiential rollouts with sampling at checkout, cross-category bundling (beauty + denim, beauty + loungewear), and digital storytelling that connects beauty to everyday rituals and life. The goal is to weave beauty into their customers’ lifestyles, not silo it,” Ramsay said.
Ultimately, Ramsay explained that the key to Gap Inc’s success in the beauty industry will be resisting the temptation to treat beauty purely as a margin play.
“The brands that win in this space are those that use beauty as a vehicle for self-expression, belonging and cultural conversation. Gap Inc has the scale and recognition and now it’s about creating the intimacy and credibility to match,” she concluded.