Gap Inc., the US apparel retailer best known for its denim and khakis, is now betting on lipsticks and lotions. The San Francisco-based company said it will enter the fast-growing beauty and personal care segment this fall, starting with a pilot launch at 150 Old Navy stores across the United States.
The assortment will span skincare, makeup, nail polish, and hair products, with most items priced under $25, positioning the brand squarely in the mass-premium category. According to the Wall Street Journal, Gap will expand the rollout gradually, with Gap-branded outlets expected to start offering beauty lines from 2026.
The move marks a significant shift in Gap’s strategy as it seeks to reduce dependence on its core apparel business, which has been squeezed by weakening consumer demand and higher tariff costs. In its most recent quarter, the company reported lower-than-expected comparable sales, underscoring the need for diversification.
Beauty offers a high-margin opportunity. Globally, the personal care industry is estimated at over $500 billion, with steady growth outpacing apparel. Analysts say Old Navy’s wide store footprint and family-oriented positioning could give Gap an edge in building a beauty portfolio that resonates with younger and more diverse shoppers.
Shares of Gap Inc. rose 2.4% in early trading after the announcement, signalling investor confidence in the diversification plan. Alongside beauty, the company said it also plans to expand its accessories portfolio, another category with higher repeat purchase potential compared to fashion apparel.
Gap joins rivals such as H&M and Zara, which have also experimented with beauty and fragrance lines to capture discretionary spend beyond clothing. For the 55-year-old retailer, this could be the start of a new chapter—where a shopping trip for jeans also means picking up a serum or lipstick at checkout.
