Gap enters beauty market with skin care and makeup lines

Gap has announced it will enter the personal care industry. The clothing retailer is planning a phased roll-out of skin care, hair care, makeup, and nail polish across its Gap and Old Navy stores. 

The company describes expanding into personal care as “a clear and meaningful opportunity.” Gap says the beauty and personal care market is “one of the fastest growing and most resilient retail categories in the US.” 

Starting this fall, Old Navy will carry an assortment of beauty and personal care products, serving as a “test-and-learn” stage. Select stores will offer sedicated shop-in-shops and Beauty Associates. 

 Gap-branded stores will offer beauty products in 2026.

The company’s shares went up 2.4% in early trading following the announcement, according to Reuters.

Diversifying with beauty

The business decision diversifies Gap’s portfolio and revenue streams beyond its apparel business. The move may mitigate the tariff impact that Gap felt in its second-quarter financial report published last week. 

Gap’s reported comparable sales were below Wall Street estimates. It said US tariffs would squeeze its margins in the current quarter.

Gap is making its debut in the personal care market.According to the Wall Street Journal, most of the new beauty products will be priced under US$25. 

“Over the past two years, Gap has made significant strides in advancing its strategic priorities, emerging as a more resilient company with stronger financial footing, more relevant brands, and a unified culture,” says the company.

“This momentum is enabling Gap to seize exciting opportunities for growth and innovation, helping ensure the company remains competitive and successful in the future.”

Alongside the beauty entrance, Gap also announced plans to expand its accessories business.