Tuesday, September 9, 2025
Beauty is a beautiful idea. Just ask Gap Inc.
The company has announced plans for a phased beauty rollout, starting with “test and learn” in Old Navy.
The upside sounds enticing: fresh growth, new and repeat footfall, and cultural relevance.
But beauty is rarely easy. Especially when an apparel brand tries shoehorn in a new beauty assortment.
Now, there are two things to consider that are specific to Gap Inc.
First, this isn’t new territory: Old Navy’s private-label beauty line, Kindred Goods, once offered bath and body at $6–$12 price point before quietly fading.
Second, category expansion fails when it becomes a shiny object that drains focus and space. See Banana Republic’s short-lived furniture offering. I mean, the products looked beautiful in store but floundered in performance.
Gap CEO Richard Dickson argues the core apparel business is fixed, granting permission to expand. Dickson is correct in the fact that a strong core enables the credibility to expand into beauty: Primark, Zara, and H&M demonstrate that.
The problem is that the core isn’t fully fixed.
The progress at Gap is real but Old Navy still struggles with sizing, and the albatross that is Athleta needs to be swiftly dealt with. Those issues deserve priority over a beauty play.
However, if beauty is going to be the move, then I would propose launching it Gap locations and not Old Navy. Gap’s more elevated positioning can support higher price points and a clear good–better–best ladder. For example, I would start with a Gap Body personal-care capsule (body wash, lotion, scrubs, body sprays). Gap stores have better full-price integrity and this would help avoid markdowns. Also, the “brand heat” is really starting to cook, just look at the Katseye and Gap x Béis sellouts. I could see a quick win with a limited back-to-school beauty drop with Katseye (lip gloss, stains).
Keep the edit tight, validate demand, then scale.
As an aside, if we have to do some kind of expansion at Old Navy, fine. In that case, I would suggest a different path. Consider doubling down on the strong new handbag line and extend into luggage and travel accessories. It’s affordable, on-trend, and naturally complementary to apparel.
Beauty can be a growth engine, but only with a healthy core and disciplined entry.
Gap can absolutely make it work. However, the risk of getting distracted and blunting the current, hard won momentum is very real.
About Retail Strategy Group
Founded in 2020, Retail Strategy Group works with market-leading brands to help them improve profitability and increase organizational effectiveness. The firm produces a weekly newsletter, The Merchant Life, where retail executives find the best retail insights and new, provocative ideas. For more information, visit www.retailstrategygroup.com.