Gap branches out into beauty business at Old Navy stores

Gap (NYSE:GAP) is expanding into the fast-growing beauty business, offering cosmetics, fragrances and personal care products at 150 Old Navy stores and Gap stores next year.

“Over the past two years, Gap Inc. 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. This momentum is enabling Gap Inc. to seize exciting opportunities for growth and innovation, helping ensure the company remains competitive and successful in the future,” the company said in a statement.

The decision to expand its offering beyond apparel mirrors similar strategies employed by rivals like Abercrombie & Fitch (ANF), along with Kohl’s (KSS) partnership with Sephora, and Target’s (TGT) experiment with Ulta (ULTA).

The new offerings will be stocked alongside Old Navy-branded merchandise like fragrances and hair care. Currently, 150 Old Navy stores have beauty and personal care products in checkout lanes with 45 containing dedicated beauty shops.

The news did little to significantly move the needle for either Gap (NYSE:GAP), Abercrombie & Fitch (ANF) Ulta (ULTA), or Kohl’s (KSS) at the open.