Gap is stepping beyond its core apparel focus by launching a beauty and personal care pilot through Old Navy stores this fall, marking a strategic shift aimed at diversifying its revenue.
Gap will introduce a curated range of beauty and personal care products in 150 Old Navy stores, with selected locations offering dedicated shop-in-shop spaces staffed by Beauty Associates.
According to the Wall Street Journal, products will span skincare, makeup, haircare, and nail polish, keeping the offerings approachable for mass-market shoppers.
The retailer plans to expand its beauty offerings to Gap-branded stores next year, starting with fragrance. It will also grow its accessories category across all its brands.
“The beauty and personal care market is one of the fastest growing and most resilient retail categories in the US, expected to surpass $100 billion in 2025, according to Euromonitor,” Gap said in a statement.
“The company sees a clear and meaningful opportunity to expand into this category with plans for a phased launch.”
The expansion comes as the retailer continues to navigate macroeconomic headwinds, including rising tariffs and muted consumer spending. Gap aims to reduce reliance on apparel and appeal to a broader customer base.
Last month, Gap Inc reported growth in comparable sales for the second quarter, driven by better results at its three core brands, including Gap, Banana Republic and Old Navy.