Gap pops as the denim giant takes a big swing into beauty and accessories
The retailer is piloting beauty through shop-in-shops at Old Navy before rolling it out to Gap stores next year.
Gap shares popped nearly 5% Thursday afternoon after the retailer said it’s stepping into beauty and accessories, starting with select Old Navy stores this fall and expanding to Gap-branded locations in 2026.
The move is part of a broader push to diversify beyond apparel. About 150 Old Navy locations will feature skin care, makeup, hair care, and nail polish (most priced under $25) with about 45 pilot sites getting full beauty “shop-in-shops” staffed with dedicated associates.
Retail peers have shown beauty can move the needle. Target’s Ulta partnership has lifted traffic, and Kohl’s said its in-store Sephora shops are on track to contribute $2 billion in sales by this year. Old Navy, meanwhile, has only dabbled at the margins, selling a limited selection of e.l.f. Beauty and Burt’s Bees lip balm in checkout lanes. Those impulse buys account for just a fraction of its $8.4 billion in annual sales.
Gap also pointed to beauty’s broader momentum: the US beauty and personal care market is among the fastest-growing and most resilient categories in retail, with Euromonitor projecting it will top $100 billion in 2025.
After today’s boost, Gap shares are now roughly flat on the year.
